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Variable Rate Car Loans
When comparing car loans, you need to decide whether fixed or variable rate car loans are right for you. Fixed car loans means that the interest rate you receive for the loan is fixed and will not change over the period of the loan term. Whereas variable rate car loans means the interest rate is variable and can change at any time during the course of the loan term.
Variable rate car loans may offer cheaper interest rates because they are at risk of increasing later which means your repayments for the loan may rise. However variable rate car loans also have the opportunity to drop their interest rates if the lender chooses to follow the interest rate cycle during a downward trend.
Compared to fixed rate car loans, you won't have the certainty of your repayments over the entire course of the loan term. Because the rate is not fixed it is constantly subject change. A fixed rate car loan can be useful for those who prefer more stable expenses and perhaps have a tight budget and cannot afford their repayments rising any further than the fixed option. However security generally comes at a cost and can mean you will pay more to the lender in the long-run.
Ensure sure you are aware of all the positives and negatives of fixed and variable rate car loans and compare them online to get the best deal. We've listed some of the best variable rate car loans in the table above to help get you going.
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Monthly repayments are indicative and based on advertised rate, loan amount and selected payment frequency over nominated loan term.
The advertised and comparison rate is based on credit of $30,000 and a term of 5 years. The comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.
Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Read our detailed disclosure here.
