Advanced Nissan Financing: APR Percentages Explained

While our Nissan financing process is streamlined, there are lots of terms and figures that can get confusing. In fact, many buyers don't understand APR percentages and how they're calculated. We're providing a closer look at Gillman Nissan.

What is APR?

The Annual Percentage Rate (APR) is a term you'll see if you choose to finance one of our new Nissan models or pre-owned vehicles. Your APR includes all the additional costs that you'll pay for your auto loan, in addition to the cost of your vehicle. The APR includes your interest rate, which is a direct fee that you owe your lender, as well as any other charges and fees that you owe for borrowing the money.

How is it Calculated?

Similar to an interest rate, your APR is expressed as a percentage. It includes your interest rate, as well as additional fees such as the origination fee. APRs will vary by lender and which charges they include. They'll also differ depending on your buying criteria such as your credit history and score, income, and expenses.

How Do I Know What My APR is?

The Truth in Lending Act (TILA) requires lenders to provide important details about your loan, including your APR. You can ask for an itemization of your prepaid finance charges and fees so that you can see what's contributing to your rate. If you prefer, you can get prequalified ahead of time so that you know what to expect before you shop.

How Can I Improve My APR?

A high APR can contribute significantly to your loan, so you want to try to secure the most competitive rate that you can. Improving your credit score can help to improve your APR. Lenders are also more likely to give better rates for loans that aren't as risky. So, limit your loan length, if you can, or apply a generous down payment or trade-in value.

Apply for Nissan Financing in Rosenberg, TX

If you're still feeling overwhelmed about the financing process, don't worry. Our financial experts are here to help every step of the way. Reach out to our Nissan dealership in Rosenberg, TX with any questions you may have or stop in to get started today!