By David<\/p>\n
Though most of us are familiar with what APR is from using credit cards, many of you may still be wondering “what does APR mean for cars<\/b>?” To answer this question, we will take a look at exactly what APR is and how it will affect your next car loan.<\/p>\n
Click here to compare low APR loan offers<\/a><\/p>\n Need a credit card? Review 0% APR offers from top lenders.<\/a><\/p>\n APR<\/b><\/p>\n If you are unfamiliar with APR, we must first get you up to speed before we can answer the question \u201cwhat does APR mean for cars<\/b>?\u201d APR is an abbreviation for Annual Percentage Rate and as the name suggests it is the percent rate that you will pay on a loan each year. This term is used interchangeably with interest rate, so do not be confused by the different terms.<\/p>\n How it is determined<\/b><\/p>\n The next thing to know when pursuing an answer to the question \u201cwhat does APR mean for cars<\/b>?\u201d is how your APR is determined when you apply for a car loan. This is typically based on a few different factors<\/p>\n 1)\u00a0\u00a0\u00a0\u00a0\u00a0 Credit Score<\/span> \u2013 the most influential criteria is going to be your credit score. The higher your score is, the more likely that you will be able to get a loan with a lower APR<\/p>\n 2)\u00a0\u00a0\u00a0\u00a0\u00a0 Type of Car<\/span> \u2013 the type of car you are getting (either new or used) will also affect your APR for the loan. Getting a loan for a new car will typically result in a lower APR than getting a loan for a used car assuming you are borrowing the same amount.<\/p>\n 3)\u00a0\u00a0\u00a0\u00a0\u00a0 Amount & Duration<\/span> \u2013 The amount you are borrowing and the length of time you are borrowing it for will have a big impact on your APR. The more you borrow and for longer, the higher your APR will typically be.<\/p>\n Click here to compare low APR loan offers<\/a><\/p>\n