How Interest Rates Affect Terms of Your Car Loan

How Interest Rates Affect Terms of Your Car Loan

You may be able to choose a fixed rate or variable interest rate loan for your financing. An interest rate is the amount a lender will charge you to borrow money. Fixed Rate: The interest rate will stay the same throughout the entire loan. Generally better for longer-term investments if the interest rate is lowers. Variable Rate: Rates can change over time. Might be riskier especially if the interest rate increases over time. But if you are planning to pay quickly, you might pay less with a variable interest rate loan with a low interest.