Interest rate vs. APR
For a more accurate comparison of your car financing options, it’s best to determine each lender’s annual percentage rate (APR). That’s because it offers a more accurate overall cost on how much an auto loan will cost you and helps you make a more informed car financing decision.
The APR is the interest rate on the car loan plus any additional costs and fees associated with the auto loan. You can find the APR in the loan agreement — keep in mind, that it’s usually higher than the advertised interest rate.