Most car loans are fixed rate. That means the interest rate is locked in for the term of the loan. This offers the advantage that your repayments will not go up or down so it is easier to budget and you can’t get caught out with higher-than-expected repayments. The downside is that if you want to make extra repayments or to pay off your loan early you may have to pay a fee. Loans.com.au only offers fixed rate car loans.
Some car loans come with a variable interest rate. That means the rate can go up or down at the discretion of the lender. Lenders usually adjust their rates because the Reserve Bank has changed its official cash rate, or because of changes in the cost of funding. If rates change, your repayments will also move up or down.