What's the difference between the interest rate and the APR on a car loan?
"While shopping for car loans, I've noticed that lenders quote an interest rate, APR, or both.
What do these two rates mean?"
Answer provided by
Answered on Jun 10, 2021
“The interest rate is the percentage of the principal your lender charges you for borrowing the loan.
The APR, or annual percentage rate, includes interest plus fees that start accruing on the first day of your loan.
Generally speaking, if you want to know what you’re actually paying, calculate the APR.”
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