Terms You Need to Know for Car Loans in St. Peters
October 18, 2017
Whether you are buying a home or purchasing a car, there are some important financial terms that you should understand to save money over the term of the loan. Before looking for car loans in St. Peters, learn the difference between your interest rate and the annual percentage rate or APR.
Differentiating between these two financing words can potentially save you hundreds to thousands of dollars.
- The interest rate is the amount borrowed for the loan. It can be a fixed rate or variable and is communicated as a percentage. This number calculates your actual monthly payment.
- The APR not only reflects the interest rate, but also additional fees. It is also recognized as a percentage.
The information that both rates provide can help determine the total cost you will pay for a vehicle, as well as an accurate monthly payment. If you are more interested in the lowest possible monthly payment for one of the numerous pre-owned Jeeps for sale, you should focus more on the interest rate. If your main concern is the total payment over the term of the loan, concentrate more on the APR.
A reputable dealer will help you determine the associated costs with the auto you choose and give you all the information you need to make the most informed decision about financing.
Call 5 Star Auto Plaza at (636)940-7600 for additional information about car loans in St. Peters and our current selection of pre-owned vehicles of all makes and models. We have the car and the loan for you.