What is the best fixed rate car loan?

A fixed rate car loan is a type of vehicle finance where the interest rate does not change throughout the life of the loan, unlike a variable rate car loan. With a fixed rate car loan, you don’t have to worry about rising rates or unpredictable monthly payments. But take note that, fixed rate car loans aren’t all cut from the same cloth. In fact, there are different types of fixed rate car finance out there that are tailor-made for a specific vehicle purchase. 

Everything starts by finding a good car loan that meets your needs. When shopping for a fixed interest rate car loan, here are some of your secured finance options from loans.com.au: 

New car fixed rate loan 

A new car fixed rate loan could be ideal for those in the market for a brand new vehicle. This is one of the most popular types of car loans because it offers more flexibility and typically has much lower rates than car loans directly from the dealership. 

With a new car fixed rate loan, you’re not limited to buying what car is currently available at a certain dealership. You have the freedom to choose where and what car you can buy. It also gives you more room to negotiate with the dealership for a better deal.  

This fixed rate loan can also provide more opportunities to save because it usually has better loan features than the standard dealership loan.  

Used car fixed rate loan 

If you want to buy a second-hand vehicle, you can fund your purchase with a used car fixed rate loan. This loan can be used for dealership purchases or private sales making it easier for buyers to find the best deal on their vehicle. 

Used car fixed rate loans can be especially beneficial for private sales. Sellers expect to be paid in full and for buyers who don’t have enough funds on hand, this could mean losing out on their ideal car. With a used car loan, you can buy it now and pay later. 

At loans.com.au, you can buy a used car that’s eight years old (or older depending on certain factors). For this type of car loan, the interest rates may vary depending on the age of the car you’re buying. Usually, the older the car, the higher the rates. You could use our car repayment calculator to see how different rates can affect the overall cost of your loan. 

Electric car or green car fixed rate loan 

An electric or green car fixed rate loan offers discounted rates for electric vehicle purchases. This can be a great opportunity for car buyers who want to go electric but aren’t too keen on the higher sale prices. Not only are you saving money on your loan, but are also doing your part to reduce your carbon footprint. 

Electric cars offer incredible benefits. These vehicles don’t emit any carbon emissions, reduce fuel and maintenance costs, and a plethora of government incentives that lessen the cost of purchasing an electric car even further.  

Tips on finding the right fixed rate car loan 

Here are a few things to keep in mind so you can have an easier time shopping around for a loan: 

• Know what kind of car you’re buying. With so many different types of fixed rate car loans to choose from, borrowers might get overwhelmed. The quickest way to narrow down your options is to figure out what vehicle you’re buying and go from there. 

• Pay attention to comparison rates. Finding the best deal on your car loan can be challenging. If you want to know the true cost of a loan (including interest and fees), always look at the comparison rate. The higher the comparison rate, the more expensive the loan. 

• Talk to the lender. The best way to learn more about a lender’s loan offerings is by speaking with a lending specialist. This is also a great way to know the lender’s car loan application process and more information about your car finance options. 

Ready to apply for a car loan? Apply online today and buy your dream car sooner! To learn more about loan.com.au’s car finance products, call 13 10 90 and our friendly lending specialists are more than happy to discuss your finance needs. 

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