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What’s the magic number for APR on car finance? What is considered a good/bad rate?

If you’re into your cars, you’ll know better than most that these four wheeled machines that we so dearly love are quite expensive. In many cases, they’re a luxury purchase – we don’t necessarily need a new Audi A1 or a BMW 330i or a Ford Fiesta ST but we would very much like to have one, regardless!

As one of the most expensive things the average John or Jane will own, it’s important to know that you’re getting a good deal on your car finance and to do that, we’ll need to know what is a good APR rate and what is a not-so-good APR.

What Is Considered a Good APR Rate For Car Finance (1)

Firstly, for those that don’t know, APR stands for annual percentage rate and is a wrap up of what it costs to borrow the money you needed to purchase a car. In other words, it’s the interest you pay on top of the amount lent to you so ideally, a consumer wants to pay as little as possible or zero interest.

So, what is a good APR rate? Assuming the applicant has a credit score that ranges from perfect to good, an APR of 6% – 12% can be expected. However, if the applicant’s credit score is average or poor, rates can quickly skyrocket and lenders can become much scarcer.

When it comes to sub-optimal credit scores, applicants may need to rely on more specialist lenders that are able to accept them but costs can rise to over 20% due to the risk the lenders are taking.

What Is Considered a Good APR Rate For Car Finance (1)

What makes things even harder is that in the car finance industry, there are all kinds of lenders out there and it can quickly become hard to identify which can offer genuinely good deals and which aren’t as good value as they make out to be. Collectively, the MV team have had plenty of experience when it comes to car financing and that’s why we’re confident in recommending one company that consistently offers good car financing deals.

What Is Considered a Good APR Rate For Car Finance (1)

We’ve partnered with Flow Car Finance for a reason. Not only do they make 6.8% APR financing available for many but also offer customer service that’s second to none. Backed by a review score of 4.8 stars on Google and 4.4 stars on Trustpilot, customers may come for the good finance offers but they certainly stay for the friendly and personable customer service.

With so many credit brokers about now, all seemingly offering the same thing and claiming to be the most competitive and most convenient, it becomes hard for the average consumer to understand whether or not there are better deals to be had.

Being a fairly new broker, Flow Car Finance isn’t yet as well known as the big players that you may see advertised on TV, which means a lot of people will be missing out on their low-APR finance plans simply because they haven’t shopped around. Save yourself some extra money each month and be sure to shop around for the best deal!

Check out Flow Car Finance and you won’t regret it!

If anyone’s used Flow before, let us know how you found your experience with them, in the comments!

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