The definition of annual percentage rate, or APR, relating to auto loans, is the cost of credit over one year, shown as a percentage. The APR is an interest rate that is different from the note rate. The annual percentage rate is a standard rate used to compare loans and loan programs.
It was designed to measure the "actual cost" of a loan. The Federal Truth in Lending law requires lending companies to disclose the APR when they advertise a rate. This levels the playing field, preventing lenders from advertising a rate that has "hidden fees".
Your credit history, current finance rates, competition, market conditions and special offers are among the factors that influence your annual percentage rate, or APR. It's important to remember that the APR does not affect monthly payments. Your monthly payments are decided by a combination of the interest rate and the length of the loan.
What decides Annual Percentage Rate? Annual percentage rate is infulenced by many factors. Your credit ... more.
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