What's the difference between an interest rate and APR?

Interest Rate vs. APR — What’s the difference?

Interest rate = The basic % you pay each year to borrow money. 

APR (Annual Percentage Rate) = Interest plus lender fees & finance charges.

So while the interest rate shows the cost of borrowing, APR reveals the true total cost of your loan.

Tip: Always compare APRs when shopping for auto loans — it’s the more complete picture!