New Car Finance APR

Published Date: 25th Jan 2023


New Car Finance APR (Annual Percentage Rate) can seem complicated, but getting to grips with the basics of APR is essential in order to get the right finance deal for your car. New car finance typically comes with an APR, and understanding this number is key to ensuring you’re getting a good deal.

To start, let's look at what APR actually is. In its simplest form, APR is essentially the interest rate of your loan and the total cost of borrowing. This figure takes into account all the costs associated with your loans, such as monthly payments, deposits and any fees associated - allowing you to look at all these costs totalled together for an accurate overview of what you’ll pay - as well as what this would potentially look like on a month-by-month basis. Understanding your APR ultimately helps you budget better and makes it much easier to compare different finance deals when researching options.


The Difference between Representative and Actual APR.


When looking into new car finance, two types of APRs need to be taken into consideration - representative APR and exact or actual APR. Representative APR is essentially a generic suggestion of what your overall percentage will be based on what most customers receive, whilst exact or actual APRs are based on an individual’s credit rating and financial situation. An exact or actual APR provides a more accurate view of overall costs, which must be considered when picking a finance option, so both APR types must be considered before choosing any New Car Finance deal.

Unfortunately, there isn't really any specific way to tell what a good overall car finance Apr for any particular car might be, as it will depend on each individual's credit rating and overall financial situation, which determines how much interest each applicant pays over time.


Generally speaking, if your credit rating is high, lenders are likely to offer lower APRs, meaning borrowing will be less costly in the long run due to lower monthly repayments and other fees being charged by lenders. UK Car Discount Limited offers New Car Finance with APRs starting from 10.4%.


Calculating precise car finance, APR can also seem daunting; however, fortunately, lenders generally use standardised methods when calculating this figure, so online calculators can provide an estimate - though these should not be relied upon entirely as they do not take individual circumstances into account so may provide inaccurate results compared to professional calculations already undertaken by lenders once credit checks have been conducted. A lender accurately calculates an exact/actual Apr based on their customer's situation, which gives more true insight into potential costs related to car finance - making it much easier for customers to budget correctly whilst taking advantage of great car savings at UK Car Discount Limited too!


• Obtain an accurate overview of the total cost of car finance by understanding APR.

• Receive more competitive interest rates than other loan providers.

• Compare different lenders and find the best deal on a new car loan.

• Take advantage of lower APR to reduce overall costs

• Use online calculators to estimate potential payments and get tailored advice from a lender or broker.


Find out more by calling 0161 946 3500 or clicking the link: New Car Finance (