Understanding APR in Ballwin, MO

Fixed APR

There are two basic types of APR: fixed and variable.

A fixed APR means that it won’t change over the life of the loan. What you agree on when signing is the rate you’ll receive as you pay off your debt. That means a fixed APR is more predictable, making budgeting easier.

Variable APR

A variable APR is based on an indexed interest rate, determined by figures from reliable organizations like the Wall Street Journal.

Variable APRs may be easier to secure if you have less-than-ideal or no credit, but they can fluctuate in or against your favor, potentially complicating your budgeting plans.

Determining APR

What impacts your APR?

It’s ultimately determined by the lender, but there are several factors that will dictate whether you get low, fixed, or variable rates.

The major factor is your credit score, which is determined by whether you pay your bills on time, how much debt you currently have, how old your credit history is, and the types of credit you have (e.g., credit card debt and mortgages), among other things.

Staying informed

Our dealership finance center will not only help you find great rates, but we’ll also walk you through the process of getting a loan.

One of the best things you can do before getting a new car loan is to research information on APR, and we can also help you to budget properly, to figure out how much your down payment should be, and whether GAP insurance and other add-ons might be good for you.