---
id: faq-0006
title: "What is APR and how does it affect my loan?"
category: faq
subtopic: financing
page_type: faq
source_url: "https://www.castlechevymchenry.com"
tags: ["financing", "APR", "interest rate", "cost"]
questions:
  - "What does APR mean?"
  - "How is my interest rate determined?"
  - "Can I negotiate my APR?"
related: [loan-terms, monthly-payments, credit-score]
dealer: Castle Chevrolet McHenry
---

APR (Annual Percentage Rate) is the yearly cost of borrowing as a percentage. It includes the interest rate plus any lender fees, so it's the true cost of your loan.

A lower APR means you pay less interest overall. Your APR depends on your credit score, loan term, down payment, the vehicle type, and current lender rates. Better credit typically unlocks lower APRs.

While APR isn't always negotiable directly, you can influence it by improving your credit before applying, putting down more money, or choosing a shorter loan term. Our finance team works with multiple lenders to find you the best available rate for your profile.

**Call (779) 600-2956** to get your personalized APR options and see how different choices affect your total cost.