APR is used to describe what in relation to a customer?

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Multiple Choice

APR is used to describe what in relation to a customer?

APR represents the annual cost of borrowing money for the customer. It’s the true yearly percentage cost of a loan, including the interest rate and any fees that are rolled into the loan, expressed as an annual rate. This single figure lets customers compare financing offers from different lenders, since two loans with different interest rates and fees can end up costing the same overall when adjusted to APR. This concept doesn’t describe the customer’s credit score, which is a measure of creditworthiness used by lenders. It also isn’t about the vehicle’s fuel efficiency or the dealer’s commission rate, which are separate factors in the buying process.

APR represents the annual cost of borrowing money for the customer. It’s the true yearly percentage cost of a loan, including the interest rate and any fees that are rolled into the loan, expressed as an annual rate. This single figure lets customers compare financing offers from different lenders, since two loans with different interest rates and fees can end up costing the same overall when adjusted to APR.

This concept doesn’t describe the customer’s credit score, which is a measure of creditworthiness used by lenders. It also isn’t about the vehicle’s fuel efficiency or the dealer’s commission rate, which are separate factors in the buying process.

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