05 June 2006

APR - The Annual Percentage Rate. This is the true and total cost of a loan, and is the most effective way to compare sources of finance. The APR covers the total amount of money you will pay back, including interest and charges, and must be quoted to you by the lender if you ask for it. Don't let them get away with quoting just the flat rate of interest. (See also See also Flat rate and Finance.)


Want to know the difference between your APRs and your PCPs? Our Glossary will guide you through the minefield of car-buying terms.

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