Car Loan APR
Quick Answer
The annual percentage rate representing the total cost of borrowing for a car loan.
Definition
The annual percentage rate representing the total cost of borrowing for a car loan.
Explanation
APR on car loans includes the interest rate plus any fees. Since car loans typically have minimal fees, APR is usually close to the interest rate. A difference of just 2% can mean thousands of dollars in extra interest over the loan term.
Checking rates with multiple lenders (banks, credit unions, online) can save significantly.
Example
$30,000 60-month car loan: 4% APR = $552/month ($3,150 interest). 8% APR = $608/month ($6,498 interest).
Frequently Asked Questions
What is Car Loan APR?
The annual percentage rate representing the total cost of borrowing for a car loan.
How does Car Loan APR work?
APR on car loans includes the interest rate plus any fees. Since car loans typically have minimal fees, APR is usually close to the interest rate. A difference of just 2% can mean thousands of dollars in extra interest over the loan term.Checking rates with multiple lenders (banks, credit unions, online) can save significantly.
Can you give an example of Car Loan APR?
$30,000 60-month car loan: 4% APR = $552/month ($3,150 interest). 8% APR = $608/month ($6,498 interest).
Free Excel Templates
Also try our free Mortgage Amortization Schedule template
Create a detailed mortgage amortization schedule. See exactly how much principal and interest you pay each month over the loan term.
Download Mortgage Amortization ScheduleAlso try our free Debt Payoff Plan template
Compare Snowball vs Avalanche strategies and create a personalized debt payoff plan with detailed amortization schedule.
Download Debt Payoff Plan