Fixed vs Variable interest rate - On car financing

[AwTroN]

Hey peeps,

So I was wondering, if you were to finance your car today, in the current economic times, would you go for a fixed interest rate, or a variable interest rate?

 

[Chevron]

Would depend on the diffence in rates offered. I it was 1% I might consider fixed. Maybe. Otherwise I'd take variable.

If you pay the higher % into your car anyway you save much more even if the interest rate goes up a year or two later.

 

[AwTroN]

On variable the offered rate was 10%

And on fixed, the offered rate was 11%

 

[Devill]

Hey peeps,

So I was wondering, if you were to finance your car today, in the current economic times, would you go for a fixed interest rate, or a variable interest rate?

I would go for a fixed interest rate as the possibility of a debt "bomb" exploding in the near future is not out of the question. Also currently the rates are low and thus you can manage the risk effectively.

 

[Wasp_21]

If the loan period is 60 months and less, go for variable. there is not much at this point indicating any massive interest rate hikes in the near future. 72 months, and i would recommend fixed. Do a premium comparison of the fixed vs variable, and the difference will show you the variable spikes before fixed becomes cheaper than variable. i.e. if variable is 2500 pm, and fixed 3000, you looking at 500 per month and 30K over a 60 month period. You basically have to have a 1% + increase over the period to then bypass the fixed rate. basically 500 per month risk.