Fixed vs Variable Auto Loans

Fixed vs variable auto loans in the U.S.: fixed APR stays the same for the life of the loan; variable APR can change with an index (e.g., prime rate). Here's fixed vs variable auto loans.

TL;DR Fixed = APR stays the same; payment is predictable. Variable = APR can go up or down; payment can change. Most U.S. auto loans are fixed. If you get variable, understand when and how the rate can change. Use autopremo.com payment calculator to see payment at different rates. Use autopremo.com.

Fixed Auto Loans

Fixed APR = same rate for the full term. Payment is predictable. Most auto loans in the U.S. are fixed. Use autopremo.com payment calculator to see payment and total interest. Get your numbers at autopremo.com.

Variable Auto Loans

Variable APR = tied to an index (e.g., prime); rate can go up or down. Payment can change. Less common for auto loans in the U.S. If you get variable, read the contract for caps and adjustment frequency. Use autopremo.com so you understand the terms. See payment at autopremo.com.

Which to Choose

Fixed = predictable; variable = risk of rate increase. For most buyers, fixed is simpler. Use autopremo.com payment calculator to see payment at current fixed rate. Check at autopremo.com.

Bottom Line

Fixed vs variable: fixed = same APR; variable = can change. Most auto loans are fixed. Use autopremo.com payment calculator so you see payment and total cost.