Here at Lincoln of New Bern, we offer accessible, judgement free financing support on every stage of the vehicle purchasing process. We’re here to answer your pressing financing questions, like, “what is APR on a car?” and to provide the tools and resources you need to take home the right vehicle at the right price today.
APR and Lincoln Financing Explained
When it comes to auto financing, the more you know, the better. Preparation and research can help you to find more agreeable terms, so you can focus on picking out a car you love. And APR is just one of those important financing elements to consider. Here’s a look at APR and what it means for your new car budget.
What is APR?
APR simply stands for Annual Percentage Rate. This accounts for the interest rate on the loan, as well as any pre-set fees that might be associated with the loan, and will be presented to the buyer as a percentage. Lenders are legally required to disclose the final APR before contracts are signed, to help protect buyers.
Is APR Just Another Word for Interest?
Not exactly. APR and interest are similar, but they’re not the same. Interest solely refers to the cost of borrowing money. A lender provides a certain amount of upfront capital, and you pay them back over time. For the benefit of that capital, you pay a small percentage of the loan each month.
APR accounts for interest, but other fees and costs, as well. Some lenders have built in fees, processing costs, or prepaid financing charges. The APR is a more accurate reading of your total monthly and yearly car ownership costs.
You can learn more about Lincoln financing terms and options here at Lincoln of New Bern. We also offer a wide collection of luxury vehicles at affordable prices, and Lincoln service you can rely on. Begin the financing process with the support of our team today.
