As the name would indicate, a variable rate loan is one where the interest rate attached to the loan can change over time. This is the opposite of a fixed rate loan, which has a single interest rate which is guaranteed not to change for the duration of the term. Most motorcycle loans are fixed rate, as this allows the borrower to know exactly how much they will need to pay back month after month, until the loan balance has been satisfied. With a variable rate loan, the rate might be low at the start, only to climb much higher later in the term. This arrangement can cause problems if the payment becomes more than the borrower can handle toward the end of the loan. As you shop, you’ll want to look primarily at fixed rate loans for the security and predictability that they offer.