• 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 once-off lump sum that is paid at the end of a car loan, covering off the outstanding balance.

This allows you to repay only part of the principal of your loan over its term, reducing your monthly repayments in exchange for owing the lender a lump sum at the end of the loan term.