When you decide to finance a new Volvo from Clayton Motors Inc. in Knoxville, TN, you will come across three important letters: APR. APR stands for "annual percentage rate", and it is one of the most important factors to consider when buying a vehicle.
What is APR?
When you take out an auto loan to finance a vehicle that you want to drive in Maryville, you agree to pay back not just the amount of the loan but also any interest. APR represents the percentage of a loan that will be charged to the borrower every year until it is paid off. In other words, if your APR is six percent, that means that over the course of the year you will charged six percent of the amount of your loan, on top of what you already pay back to pay off the loan.
Does Credit Affect APR?
Yes. Your credit rating has a significant impact on your APR. In general, having a high credit score lowers your APR, which means you pay less in interest. According to Car and Driver, the average APR for a customer with a credit score of 720 or higher is 4.96 percent, while the average APR for a customer with a credit score lower than 630 is 18.21 percent.
How Can I Find Out What My Best Financing Options Are?
Whether you want to get a new Volvo to drive in Sevierville or a used vehicle to take home to Oak Ridge, it is a great idea to contact our Finance Center. Our financing staff can work with you to find the best payment plan for your budget. They can also any questions you might have about the financing application.
Test Drive Your Next Vehicle at Clayton Motors Inc.
Are you ready to start shopping for your next vehicle? If so, be sure to contact Clayton Motors Inc. and schedule a test drive today!