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.