What does APR mean on a car loan?

What is the APR on a car loan? I’m shopping for a loan for my first car and I’m not sure what the APR numbers mean.

Congratulations on your first car! APR means Annual Percentage Rate. APR is the amount you’ll pay in interest and additional fees each year on your car loan. If a loan has a high APR, it’s more expensive than a loan with a lower APR.
APR is based on your credit score. If you have a good credit score, you can typically expect an APR between 2.34% and 5.49%. If your credit score is lower, you may see an APR of 20% or higher.
If you have a low credit score, it’s often a good idea to find a cosigner with excellent credit so that you can qualify for a loan with better terms.
Regardless of your credit score, take the time to shop around. Looking at multiple lenders ensures you’re getting the lowest APR.
When you find and apply for a new car loan, you’ll usually need to show proof of insurance. The Jerry app makes it quick and easy to find the best rates available on the insurance coverage you want! Just download the app and answer a few questions to see a comprehensive cross-analysis of the best car insurance policies from providers like Allstate, Nationwide, and Progressive.
Liz Jenson
Answered on Dec 03, 2021

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free