Navigating your auto loan details can feel overwhelming at first. From confusing terms to being unsure if a deal best suits your lifestyle and budget, we have finance experts at Audi Valencia standing by to help. One of the most important aspects of your auto loan is your annual percentage rate (APR). Learn more about what impacts your APR before visiting our finance center today.

What Does APR Mean?

Your annual percentage rate is the percent of the total amount the lender will charge you to finance your loan. On top of the loan amount, you can expect to pay interest. The amount of interest you’ll face is determined by your APR. To get the most out of your auto loan, you’ll want to aim for a shorter term with a low APR. The fewer payments you make, the less interest you’ll pay. However, if you’re looking to make lower monthly payments, a longer term may be a better fit for your budget.

What Affects Your APR?

While the average interest rate for drivers with excellent credit is around 4.96 percent, there are many components that can affect your APR. Your credit score will be one of the largest aspects to impact your rate. The better credit score you have, the lower you can expect your APR to be.

You’ll also find some variation when it comes to what kind of vehicle you want to bring home. A new model will come with a lower APR. If you’re looking to get behind the wheel of a used car, truck, or SUV, you can expect to pay more interest. However, a higher APR doesn’t mean that buying a pre-owned model is a bad investment. When you bring home a like-new model at a competitive price, you can still save money in the long run.

Visit Our Finance Center at Audi Valencia Today

For more information about your APR, we encourage you to visit our finance department at Audi Valencia today. Our experts will be happy to answer any of your questions and walk you through the car-buying process. We look forward to working with you!

Categories: Finance