It may be difficult for you to decide which type of car loan is the best solution for you. This is because you have to look at more than the interest rate.
What should you look at besides the interest rate?
You should look at
- The APR - Annual Percentage Rate
- Up front arrangement fees
- The term and repayment structure
The Annual Percentage Rate
The loan with the lowest interest rate is not necessarily the cheapest. You may have to pay an upfront arrangement fee and/or a deposit. This along with the term of the loan will impact on the total amount that you have to repay. You should therefore ask for the APR of the loan. The APR is the true cost of the loan expressed as an annual percentage of the loan amount.
APR stands for ‘annual percentage rate’. It aims to gives you a more accurate idea of how much you are being charged when you borrow money. It allows you to compare the total cost of borrowing money for different types of loan and lengths of time.