What does 0% apr mean? on car commercials?

Question

What does 0% apr mean? on car commercials?

Answer 1

APR is what interest rate you will pay over the course of a year.  It is calculated monthly using the balance of the loan and included ni your monthly payment.  

If you buy a car for you will notice that the first half of the loan you will not see a large decrease in the balance for the first half of the loan due to the balance holding and collecting the APR.  

0% APR means you will pay only the price of the car and no fee to the bank for them loaning the money...

You will notice at the end of the comercial you will see OAC or "on approved credit" this means that you have to have a certain credit score to qualify for that special offer.

The 0% is usually reserved for the Teir 1 credit customers which varies depending on the bank

Most banks will offer this to a credit score of 750 or better with a long history of satisfactory accounts.

Be very weary of your APR as it will determine what your monthly payment will be.  Always negotiate a price with the dealership prior to allowing them to run your credit or giving them any of your demographic data as them pulling your credit will lower your credit score.

Hope this helps...

Answer 2

annual percentage rate. interest that the bank will charge on the loan. * the money you borrowed devided up into months with an interest added to that. its the way banks make money on loans.

Answer 3

It means that they will charge you NO interest (if you qualify).

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Finance charge is NOT the same thing as APR.

Good Luck...

Answer 4

you only pay principle cost.

Answer 5

It means that they will not charge you any annual percentage rate on top of the car price.

They could still charge you finance charges though, and they can charge you a lot more money than the car is worth.

Answer 6

thats a gud question idk

Answer 7

The APR or the Annual Percentage Rate is the percentage you'll be paying to the lending agency, whether that's the financing company through the dealership or through your bank, or through your credit union. That's the cost, if you will, of borrowing that big lump sum of money from them and then paying them back over time. Knowing the APR is very important when you buy a car because that is what is going to be accumulating beyond the actual price of the vehicle itself. So, if you buy a vehicle for $10,000, you're going to be paying that money back plus whatever the APR is on top of that. Most people will go into buying a car thinking what their monthly payment is, and where their threshold is just on monthly payment. But the APR can then start to add up on you, especially if in order to get that payment down to a certain level, you'll add an additional year of interest to it. So maybe you're looking at a three-year loan, it goes out to four years in order to get that payment down. Well you need to know how many years that term is, and what the APR is, to see how much you're really going to be spending for that vehicle over the time you have the loan.

Answer 8

annual percentage rate.

Answer 9

no finance charges, but you will probably not qualify for that, you need to have like perfect credit for that