Guide to Variable vs. Fixed-Rate Auto Loans

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is a Variable Rate?
How Do Variable-Rate Auto Loans Work?
What Is a Fixed Rate?
How Do Fixed-Rate Auto Loans Work?
Are Auto Loans Usually Fixed or Variable-Rate?
Is a Variable-Rate or Fixed-Rate Better?
Pros and Cons of Variable vs Fixed-Rate Auto Loans
Finding the Right Auto Loan Rate Type
The Takeaway
Frequently Asked Questions
Photo credit: iStock/Dilok Klaisataporn
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About the Author
Austin Kilham is a writer and journalist based in Los Angeles. He focuses on personal finance, retirement, business, and health care with an eye toward helping others understand complex topics.
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