When is APR used at Bobby Rahal Toyota in Lewistown

When it comes to buying a car, you want a trusted dealer that will make sure you completely understand your agreement.

That's why you've come to Bobby Rahal Toyota, where your trust and satisfaction are highly valued. We make it our mission to explain every little detail of the car buying process so you are guaranteed to leave with confidence and a smile after you purchase.

So, what is APR anyway? It stands for Annual Percentage Rate, or the total amount of interest paid on your car loan over one year, including the fees and charges of initiating and maintaining the loan.

This means that an APR is only used when you purchase a car and take out a loan, it is not used for leases.

APR varies depending on the loan offer. Whether it's a good or bad APR really depends on the economy, your individual tolerances, and your qualifications.

A higher APR means higher, short-term payments. A lower APR means a lower monthly payment, but loans of this kind are dependent upon a strong economy and a high credit score for the borrower. 

APR versus Money Factor

Simply put, if you're leasing a car, your monthly payments include depreciation, taxes, and interest, and the money factor determines the interest charge. In this way, a money factor is used in lieu of APR. Are they equivalent? Not really.

Then why are money factors even a thing? Well, because leases require more specific components in the equation, making it much harder to calculate in the conventional way. So, instead we use a money factor.

Nonetheless, calculating the equivalent APR for your lease can still be helpful. You can convert your money factor into the more commonly used APR by simply multiplying the money factor by 2,400.

Money Factor x 2,400 = APR

For example: (0.03) x 2,400 = 7.2%

Do you still have questions about APR or other car financing terms? Ready to visit our dealership? Contact our staff at Bobby Rahal Toyota or visit us at 426 Electric Ave, Lewistown, PA 17044. 

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Car loans come with plenty of paperwork, but that's why you come to a trusted dealer like Bobby Rahal Toyota of Lewistown for your car buying needs. You want someone who can dig deep, explain all of the terms, and work with you so you're not just signing the paperwork...

Contact

Bobby Rahal Toyota of Lewistown

425 Electric Ave.
Directions Lewistown, PA 17044

  • Sales: 717-248-0119
  • Service: 717-248-0119
  • Parts: 717-248-0119

Hours

  • Monday 9:00am - 8:00pm
  • Tuesday 9:00am - 8:00pm
  • Wednesday 9:00am - 8:00pm
  • Thursday 9:00am - 8:00pm
  • Friday 9:00am - 6:00pm
  • Saturday 9:00am - 5:00pm
  • Sunday Closed