Variable Rate Car Loans
Keep your repayments open to capitalise on interest rate falls with a variable rate car loan through Savvy.
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Compare variable rate car loans
When researching your car finance options, you’re likely to have come across both fixed and variable rate car loans, so it's important to understand how these differ. While the majority of car financiers offer fixed rates, it’s not uncommon for borrowers to opt for variable rate loans instead. They're simply personal loans with a non-fixed interest rate.
Although fixed interest can provide stability of repayments, variable rate products afford you greater flexibility in how you make use of your funds. These loans may help you save money on your repayments when market rates fall. Additionally, they’re unsecured, so there’s no need to tie an asset to your loan.
Savvy can help you find a variable rate car loan today by comparing from our range of flexible lenders and products.
The features and benefits of a variable rate car loan
Competitive rates
With competitive rates from a range of lenders and some fees able to be waived, you can find an affordable option to suit your car financing needs.
Take advantage of rate drops
Because your interest isn’t fixed at the beginning of your loan, you’re in the best position to enjoy loan savings if your interest rate falls during your loan.
Fast outcome
Your lender will be able to automatically approve your initial application within 60 seconds and send your funds directly to your account in one day.
Borrow up to $50,000
With a variable rate loan for your car, you can borrow any amount from $5,000 up to $50,000, provided you can support your repayments comfortably.
Repay over one to seven years
You also have a say in the cost of each repayment by choosing your preferred loan term, allowing you to ensure they’re manageable for you.
Use the funds how you like
Unlike a standard car loan, you can buy a car older than 20 at the time or purchase or dedicate funds across different areas as per your needs.
No security needed
Because your loan is unsecured, you won’t have to put a valuable asset, like your car or another vehicle, up as collateral for your loan.
Select your pay schedule
You can opt for either weekly, fortnightly or monthly payments to suit your personal income situation, adding further customisability to your loan.
Why choose Savvy for your variable rate car loan?
Everything is online
The entire process of applying for financing can be completed online, so you won’t be required to send through any physical paperwork to your lender.
Nation-wide panel
We’re partnered with lenders across the country, giving you access to affordable personal financing wherever you are.
Save money by comparing
The more products and lenders you compare with Savvy, the more you stand to save by finding the right option to suit your needs.
Variable rate car loans explained further
Personal loans vs car loans
Although they’re very similar in structure, there are distinct differences between personal loans and car loans. Car loans, while maintaining the same minimum loan amount, have no real upper limit; you can generally apply for up to 100% of your car’s value up to your maximum borrowing power.
In addition to all of this, while you can opt for variable or fixed interest and no security on a personal loan, all car loan interest rates are fixed and all are secured. These are two factors that are important and should be factored into your decision making when it comes to choosing a car loan.
Variable vs fixed interest
As mentioned, variable interest rates come with the advantage of enabling you to experience savings when your lender lowers their rates. Fixed rates, on the other hand, lock your rate in at the beginning of the loan and remain consistent throughout your loan term.
Fixed interest in itself is offered at a lower rate than variable, potentially saving you money across your loan. Additionally, the benefit that it brings to you is that budgeting into the future is made more accurate by ensuring that each and every repayment stays the same.
Unsecured vs secured
It’s also important to understand the difference between loans without security and those with it. Variable rate car loans come without the need for an asset to secure the loan, giving you more freedom in how you choose to use them.
Secured car loans do require an asset, namely the car itself, to act as collateral for the loan. As this provides a further safety blanket for the lender, rates are lower for secured loans, adding to your overall savings. However, because the car has to be suitable collateral, you’re more restricted when it comes to your choice. We can arrange secured car financing for vehicles up to 20 years old.
The fees you’ll pay
On top of your interest, your loan will also come with added fees for you to pay. Firstly, you’ll have to pay $10 each month as part of your lender’s ongoing service costs.
Your establishment fee doesn’t come at a set amount, instead being determined by the cost and length of your loan. This can be anywhere between 0% and 5% of your total loan sum, but generally won’t exceed $600.
Fortunately, you won’t have to pay anything for completing your loan payments ahead of your set term. You will, however, pay $35 if you miss a payment or submit it more than five days late.
Eligibility requirements
The eligibility for variable interest finance is simple and broad. To qualify for your desired loan, you’ll have to meet the following criteria:
- Be 18 years or older
- Hold stable employment and be earning at least $26,000 p.a.
- If self-employed, have at least two years of trading
- Hold Australian citizenship or permanent residency
- Have no history of bankruptcy
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