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.

Answer
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
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