How to Calculate APR on Car Loan
Are you ready to finance your next car? Figuring out what you can afford is important, as is knowing the cost of your auto loan. One of the factors that goes into your loan terms is APR, or annual percentage rate.
Do you want to know how to calculate APR on a car loan so you’ll know exactly how much it will cost per year for your auto loan? The team at Burlington Volkswagen is here to show drivers in Burlington, Burlington Township, and Willingboro, NJ, how to do it!

What Is APR?
Buying a car involves a lot of different numbers, one of which is the annual percentage rate. This is the cost per year to borrow money for an auto loan balance plus other fees. For example, if the interest rate on your ride is six percent, your APR may be a few decimal points higher, say 6.2 percent, because of fees that aren’t included in the interest rate.
Lenders will determine APRs similarly to how they determine interest rates, including but not limited to:
- Credit score
- Whether the vehicle is new or used
- Down payment
- Length of the loan
- Money borrowed
There are two different types of APRs: fixed and variable. Like an interest rate, a fixed APR will stay the same throughout the life of your auto loan. Variable rates will fluctuate.
Visit Burlington Volkswagen to Find Your Next Car
Now that you know about APRs and how to calculate APR on a car loan, are you ready to find a stylish set of wheels that fits your budget? The Burlington Volkswagen team can’t wait to work with you, so contact us today and test drive your favorite vehicles on the Burlington, Burlington Township, or Willingboro, NJ, streets.