What Is The “Car Loan Comparison Rate”?
If you’ve been in the market for a new car, you’ve probably seen a car loan comparison rate mentioned.
When hunting for car finance – or any type of finance for that matter – a lower interest rate is typically something that a borrower wants. However, there are other important considerations such as the fees, whether to opt for a fixed variable interest rate, a secured or unsecured car loan and the loan term.
That’s where the comparison rate comes in. It expresses the overall cost of the vehicle in one number. Instead of looking at interest rates and fees and charges separately, the comparison rate rolls it all into one figure. This helps car buyers better compare the costs that come with that particular loan product.