Are you planning to take out a car loan, or are you looking for the possibility to save on this? Then there is a good chance that you will have to deal with the APR, the Annual Cost Percentage. This is a percentage that indicates how many costs you pay annually to be able to use the credit to purchase the car. For example, in the past credit providers tried to lure you with a low interest rate, and then charge you high other costs. This is no longer possible thanks to the APR, which means that you can clearly see in advance what the car loan will cost you.

Higher than the interest rate

Keep in mind that the APR is generally slightly higher than the interest rate that you pay. That has to do with the fact that you will pay the interest monthly, instead of per year. The interest rate is specified in the advertisements and offers on an annual basis. In addition, there may be any additional (administrative) costs. When comparing car loans, always look carefully at the APR to ensure that you can control costs as well as possible. The APR is in any case the lowest in terms of loans, because you should consider the personal loan .

Comparing car loans

Thanks to comparing car loans based on the APR you can look for the cheapest car loan. Preferably use a car loan simulation , for example to find out what a small difference in the APR can offer you annually or over the entire duration. Chances are that the differences will run higher than you might think. Especially when you borrow an amount of € 10,000 or more, it is worthwhile to take out a cheaper car loan and thus save on costs.

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