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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, updated on July 4th, 2023       

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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.

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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?

Variable rate car loans explained further

Common variable rate car loan queries

How can I save money with a variable rate loan?

There are a number of ways you can cut down on the total cost of your loan. Making additional repayments and choosing a shorter loan term are both ways of reducing the period over which you’re paying interest and fees, thus saving you money.

Additionally, making strides to improve your credit score (such as paying off existing debts and lowering your credit limits) can help you lower your interest rate.

Can I get a variable rate car loan if I have bad credit?

Probably not – while you can qualify for financing with bad credit, you’re unlikely to be able to receive a variable rate on your loan.

Am I able to change to a fixed rate loan down the track?

Yes – you can refinance your variable interest loan to a different loan. This is achieved by essentially taking out a loan with another lender to pay off your existing loan in full, thus switching your loan commitments to a new agreement. This may be done for a variety of reasons, such as to consolidate debt or take advantage of a better interest rate.

Can I make a deposit or balloon payment on a variable rate car loan?

No – these are features exclusive to fixed rate secured car loans as a means of reducing your monthly repayments and/or payable interest. Balloon payments specifically are generally reserved for commercial car products like chattel mortgages, car leases and hire purchase agreements.

How should I compare different loans on the market?

The best place to start your comparison process is with interest rates and fees on each loan. These directly impact the cost of your loan and can be primarily represented by the comparison rate, which incorporates the main fees and interest into one rate. Additionally, you should analyse minimum loan amounts, maximum and minimum loan terms and whether they offer free repayments and early settlements. You can compare each of these with Savvy by assessing our list of lending partners.

Are Centrelink payments accepted as income?

Yes – but not all Centrelink payments. More stable payments such as aged, veterans’, disability and carers’ pensions are accepted as part of your annual income, but conditional payments that could feasibly end prior to your loan’s conclusion will not. These include JobSeeker (not supplementing family tax benefits), Youth Allowance and Austudy.

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