Glossary
APR (Annual Percentage Rate)
The yearly cost of a loan including interest and fees, expressed as a percentage.
APR represents the true annual cost of borrowing money. Unlike a simple interest rate, APR rolls in lender fees, origination charges, and certain insurance premiums. When comparing auto loans, always compare APR — not the headline interest rate — because two loans with the same rate can have very different APRs depending on fees.
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