Fixed or Variable Rate; What is the Difference When Shopping for a Used Car Loan?
Heres a quick overview of the difference between fixed and variable interest rates:
Fixed interest rate car loans
- Ideal for customers who are looking for structured and set payments, and who want to know exactly when their loan will be paid off
- Great for customers who prefer to budget around regular payments
- Protects you from changes in interest rates
Variable interest rate car loans
- Ideal for customers who are not concerned with changing interest rates, and who want to benefit from times when interest rates may be low
- If interest rates go down, more of your payment goes toward your principal, so you can pay off your loan faster1.
No matter which option you choose, you can still pay down the entire car loan at any point, with no additional costs to you. Competitive interest rates are available, so visit us today!
At Credithelpfinancial our professional staff will take the time to explain the difference between a fixed and variable loan so you can make an informed decision on which type of vehicle financing is best for you.
1Should interest rates rise, more is applied toward interest but your payment amount never changes