Key highlights
- Fixed rate keeps repayments the same for the loan
- Variable rate can rise or fall with the market
- Fixed suits budgeting certainty; variable offers potential flexibility
- Fixed and variable options compared across 80+ lenders
- Obligation-free quote via a soft check only
Choosing between a fixed and variable rate is one of the key decisions when financing a business car. Each has trade-offs worth understanding before you sign.
What is fixed rate car finance?
With a fixed rate, your interest rate and repayments stay the same for the life of the loan. This makes budgeting predictable, which many businesses value. Most commercial vehicle loans in Australia are structured this way, giving you a set repayment from day one.
What is variable rate car finance?
A variable rate can rise or fall over time in line with the market. Repayments may drop if rates ease, but they can also increase, which makes cash-flow planning less certain. Variable structures are less common for vehicle finance but available with some lenders.
Should you choose fixed or variable?
If certainty matters most, fixed is often preferred. If you want potential flexibility and can absorb movement, variable may appeal. Consider how any interest is treated for your business with your accountant or registered tax adviser.
Simon Kendrick can compare fixed and variable options across 80+ lenders for your situation. Request an obligation-free Overdrive quote. It is a soft check that won't affect your credit score.
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