When it comes to buying a car, most Canadians rely on car loan options to help make the purchase affordable. But choosing a loan isn’t just about picking a vehicle and signing paperwork. One of the most important decisions you’ll make is whether to go with a fixed or variable car loan interest rate. Both loan types come with their own pros and cons—and the right choice depends on your financial goals, risk tolerance, and long-term plans. In this guide, we’ll break down what a car loan is, the difference between fixed and variable rates, and how to choose the right path for your needs.