There are performance benefits, but here is one that has not been mentioned: row migration. With char, you reserve the entire space in advance.So let's says you have a char(1000), and you store 10 characters, you will use up all 1000 charaters of space. In a varchar2(1000), you will only use 10 characters. The problem comes when you modify the data. Let's say you update the column to now contain 900 characters. It is possible that the space to expand the varchar is not available in the current block. In that case, the DB engine must migrate the row to another block, and make a pointer in the original block to the new row in the new block. To read this data, the DB engine will now have to read 2 blocks.
No one can equivocally say that varchar or char are better. There is a space for time tradeoff, and consideration of whether the data will be updated, especially if there is a good chance that it will grow.