What is financing, APR, and MSRP on a car loan?

What do APR and MSRP mean? I keep hearing commercials on the radio about financing, APR, and MSRP on cars and car loans.

“MSRP is the manufacturer’s suggested retail price. Also known as sticker price in the car industry, this is what an automaker expects dealers to sell the car for.
It doesn’t always mean that this is the bottom-dollar price, as you can certainly haggle.
APR is the annual percentage rate, which is the interest rate plus any fees or extra charges you pay rolled into a percentage. This number will always be a bit higher than your actual interest rate, as it factors in the other expenses.
Financing is just the term used to describe getting a car loan. So if a dealership offers financing, that simply means that you can get a loan with them or through one of their lending partners.”
Eric Schad
Answered on Jul 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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