Insider's Guides > Car Finance

Car Finance

Car Finance
Page  1  2  3  4  5  6  [7]  8 

APR & Total Amount Payable

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.

INSIDER INSIGHT:

  • 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.