17 AUGUST 2022

Fixed vs Variable Interest Car Loans

3 min read

Are you looking to get a car loan and would like to learn more about the options you have available? Money3 has got you covered. When it comes to essential car loans, it’s important to consider whether you’d prefer a fixed rate car loan or a variable rate car loan.

Sienna Cowles
Marketing Analyst
Car showroom with silver and grey new cars

Car Loan Fixed Interest Rates

A fixed rate car loan is a type of loan where the interest is fixed at the same rate for the full loan term. This means your repayments can be kept the same throughout your entire loan term and you can budget accordingly. Most car loans are fixed rate and may be an option to consider if you value stability and would like to avoid rising market rates.

Money3 offers car loans with fixed interest rates. Fixed rates vary depending on the loan amount, loan term, your loan conditions as well as the state of the market.

Car Loan Variable Interest Rates

Variable rate car loans are loans where the interest rate changes depending on the market and your lender’s rates. Lenders can change their rates to reflect the current state of the market.

Some lenders may allow you to make additional repayments for your variable car loan whenever the interest rate is favourable to you (or you foresee a rise in interest rates). This may also mean repaying your loan early.

Money3 currently does not offer variable rate car loans.

Is it better to get a variable or fixed interest rate car loan?

Whether a variable or fixed interest rate car loan is better depends on your personal preferences and financial circumstances. Risk-averse loan applicants may prefer a fixed rate loan for more secure and predictable monthly repayments, while applicants looking to take advantage of potentially lowering interest rates may prefer a variable rate loan.

You can calculate your monthly repayments on a fixed rate car loan with Money3’s car loan calculator. Bear in mind that our calculator does not apply to any variable loan.

1. Subject to verification, suitability and affordability

Car Loans We Offer

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Car Loans

Money3 offers a wide selection of car loans. Our car loans go up to $75,000 and can help get you one step closer to your dream car - whether brand new or used.

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Second Chance Car Loans

At Money3, we believe in giving everyone a second chance at a car loan, even if you have been turned away by lenders before. We'll give you a fair go!

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Bad Credit Car Loans

You can apply for a car loan with us, even if you have a bad credit history. We’ll give you a fair go and will consider your personal and financial circumstances when considering your application.

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Pensioner Car Loans

Our pensioner car loans are for individuals who receive pension payments such as an aged pension, disability support and Centrelink*. We offer car loans of up to $75,000.

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Single Parent Car Loans

Purchase a car to drive your kids around with our single parent car loans. You could borrow up to $75,000 for a new or used car. We’ll give you a fair go.

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Used Car Loans

You could obtain finance for a used car with Money3. Whether you’re on Centrelink benefits*, had a poor credit history or have been turned away by lenders before, we’ll give you a fair go.

* Money3 is not affiliated with, or endorsed by, Services Australia, but does provide personal loan and vehicle finance options which are available to recipients of benefit payments

Related Articles

Also check out the related articles below:

How Can I Qualify for a Car Loan?

Before applying for a car loan, it’s important to understand the basic Car Loan Requirements. Check out the requirements when applying for a car loan with Money3.

How to Get a Car Loan

Are you looking to apply for a car loan? It can be helpful to understand what the process is like. Our guide on how to get a car loan covers everything you need to know, from basic car loan criteria to loan pre-approval.

How do car loans work?

If you’re looking to get a car loan, it may be helpful to first learn how car loans work. Money3’s guide covers everything you need to know.