When you get a car loan, you will probably hear about two key numbers: The interest rate and the APR, or Annual Percentage Rate. The interest rate is the lower number. It’s the annual cost of borrowing money – the interest you’re paying the lender for the privilege of borrowing money. But the interest rate doesn’t include fees and other costs. The APR is the higher number and it reflects the total cost of borrowing, including interest.
The higher the APR, the higher your monthly payments
That’s pretty obvious but that’s how it works. Remember the…