Variable Rate Car Loan
Catching yourself daydreaming about the car of your dreams but unsure how to make it a reality?
Well Finance Monster can definitely help you on the path to realising your dream! Finance Monster runs a loan comparison service covering all types of loans including variable and fixed car loans. You can find an array of great variable car loans using our reliable and efficient service and who know’s, those daydreams could be a thing of the past!
How does a Variable Rate Car Loan work?
Variable rate car loans offer an interest rate that is flexible and subject to change. With these variable loan rates the lender can adjust the interest rate at any time with this usually fluctuating based on the primary (or market) interest rate set by the Reserve Bank of Australia. This is different to a fixed interest rate which will not change over the course of your loan repayments.
What are the advantages of a Variable Rate Car Loan?
Lower interest rates – Variability means that dips in the market interest rate will be reflected in your variable car loan. So, this type of loan may be useful for people who are confident that the market rate will decrease (e.g. a borrower may not want to be on a fixed loan rate if the market has dipped 2% and this can’t be reflected in their repayments!). This is unlike a fixed rate car loan where you can’t take advantage of dips in the market interest rate as you’re tied to a fixed rate for the duration of your loan.
Flexibility to make extra repayments – This can mean repaying your loan early without penalties, for instance paying a larger amount every two weeks. This can also help to lessen the burden of any possible increases to the variable loan rate. With a fixed rate car loan you do not have this flexibility as repayments, are fixed throughout the loan term.
Option to change interest rate – Some variable car loans give an option to change to a set interest rate. This means that if the interest rate drops to a favourable point you may be able to convert your variable-rate car loan to a fixed rate car loan.
What are the drawbacks of this kind of Variable Car Loan?
The flexibility of a variable rate car loan is also it’s major drawback. There is less certainty as the lender has the ability to change the interest rate at no notice which means, in some circumstances, your repayments can suddenly skyrocket. It’s also difficult to calculate the actual cost of a loan because the interest rate can change so much, therefore making it harder to budget.
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How can Finance Monster Help?
Let Finance Monster do the searching for you! At Finance Monster we provide a comparison service of the variable rate car loans available from some of Australia’s top Financial Institutions for you to consider. This makes the whole process simple, easy and far less stressful in finding a financial arrangement that works best for you!
Free Tank of Fuel
Here at Finance Monster we’re going to bring you not only fantastic deals and information, but awesome rewards too! That’s right rewards! At Finance Monster we give away a free tank of petrol with every new car loan entered into from our site that’s over $20K! It’s as easy as that! Call a Finance Monster Broker today to find out more about this reward, and the many ways we can help you in your quest to find a great car loan!
And please, always keep in mind…
With any car loan, additional fees, including a late-payment fee, government charges and other electronic banking fees may also apply. Finance Monster will make sure you are kept fully aware of all the terms and conditions attached to your variable car loan.
Free Finance Monster Tank of Fuel Reward Terms & Conditions
- Free Tank of Fuel is $75 dollars pre loaded onto a Fuel Card.
- Free Tank of Fuel is rewarded on Personal Loans or Car Loans over $20,000
- Fuel Card will be sent to customer after settlement of loan.