Finance

• Fixed interest: A fixed rate loan has the same interest rate for the entirety of the borrowing period, allowing you to get a clear view of what your repayments could look like.
• Variable interest: This means that the interest rate for your car loan could either increase or decrease at your lender’s discretion, and therefore increase or decrease your interest repayments accordingly.

A Balloon Payment is a lump sum you agree to pay the lender as a one-off at the end of your car loan term. Choosing a Balloon Payment for a share of your car loan’s balance can reduce your repayments. It’s called a "balloon" because it covers an inflated proportion of your car’s purchase price.