Q: What is APR on a car loan and what is a good rate right now?
A: APR stands for Annual Percentage Rate. It includes the interest rate and other fees, thus representing the true annual cost of your car loan. According to Edmunds, the average new-vehicle APR in June was 7%. Your credit score plays a major role in the APR you receive. Looking at the first quarter, according to Experian Automotive data shows the average APR for borrowers were an excellent Sub-Prime credit score was 4.55% and 16.01% for borrowers with credit score in the deep-subprime segment.
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