Financing 101 | The Difference Between APR and Interest Rates on Car Loans
So, you need a new set of wheels to get around? Choosing the make, model and cylinder power of your new vehicle aren't the only things to consider. Unless you can pay cash, financing your new car requires serious evaluation. Terms like interest rate and APR might have you scratching your head. So let's break them down and then talk about how you can get approved for international student car loans.
What is an Interest Rate?
Understanding APR vs. interest rate is vital. The interest rate is the percentage that your lender charges you each year for the duration of the loan. The interest rate may only reflect one factor of the total costs. Depending on the type of loan you get, you may be able to pay off your loan early with no penalty and save on interest costs.
What's Included in APR (Annual Percentage Rate)?
Now, on to APR, or annual percentage rate. This rate will be either the same as or higher than your interest rate. The APR on your loan encompasses your interest, fees and any other expenses associated with the loan. APR is a better reflection of the total cost of your car financing. Depending on the lenders, it’s important to inquire about the APR to understand your total obligation. There are also many online car loan calculators that you can use to get an estimate of your monthly payments.
How Can I Get a Car Loan?
International student car loans may be hard to come by, but Boro can help. If you are at least 18 years old, currently enrolled in a U.S. college or university, hold a qualifying visa, and can put together a down payment of 30 percent -- we can connect you with a car loan. You don't even need a social security number, and the loan will help you build a positive credit history.
Getting a car loan as an international student is impossible at many lenders. With Boro, you can get approved within two business days and drive your dream car home. After that, it's all open road and possibilities!