Types of car loan
There are probably as many varieties of car finance loans as of cars. But here's our quick run down.
Variable rate car finance
- Cheap car loans at the lowest interest rates on the market
- Competitive rates let you pay of the car quickly while interest is low
- Finance for car is subject to interest rate fluctuations - and rises
- Repayments - as well as the total cost of the auto loan - will rise if rates go up
Fixed car interest rates
- Budget for car loan repayments with set monthly amounts
- Car loan interest rates won't increase if market rates rise
- Typically more expensive than current variable loans
- Will look even more expensive if market rates fall
Fix me up! Show me fixed rate car loans...
Other key types of finance include:
- New car finance. So these are only available when... wait for it... you're buying a new car. (Although some of them will include a car toddler up to two or three years old.)
- Used car loans
- Online auto loans. Apply for an auto loan with the speed and convenience of the internet. Many car finance providers are offering online applications.
- Bad credit car finance. Mozo doesn't cover bad credit loans, as the car interest rates are typically too high and unadvisable. We suggest you look in to a secured loan, if applicable, or reconsider taking on more debt.