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FINANCE

APR (Annual Percentage Rate)

The true yearly cost of a car loan including interest and fees. Lower APR = cheaper loan.

// Why it matters

APR is the annualized interest rate plus required loan fees, expressed as a percentage. It's the single most important number to compare when shopping auto loans — a 1% APR difference on a $30,000 / 60-month loan is roughly $1,000 in total interest. APR depends on credit score (excellent 720+ gets best rates, subprime <620 gets penalty rates), loan term (longer terms usually have higher APR), and lender (credit unions almost always beat dealer financing). Always pre-qualify with multiple lenders before shopping.

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