Question

Why is the APR considered the most important factor to be mindful of in a car loan?

Answer 1

The APR helps the a customer determine the true cost of the vehicle.

Answer 2

An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. For credit cards, the interest rates are calculated at  yearly rate. This is called the annual percentage rate (APR).

The interest adds to the total cost of the car.The APR helps the a customer find out the actual value of car.