Credit agreements and advertisements should show APR - the Annual Percentage Rate of interest applied to the loan. Use APR figures as a guide when shopping for finance deals - and be sure to compare the same loan amount and repayment periods.
A further key figure is the TOTAL AMOUNT PAYABLE. This is the original amount borrowed or financed, plus the interest payable over the whole period of the loan or finance contract.
- Some dealers try to make finance deals appear more affordable by quoting 'flat rate' interest or weekly repayments. Don't let this confuse you - insist on terms for monthly repayments and an APR figure.