An Annual Percentage Rate (APR) is the interest rate at which you pay back money you’ve borrowed. It takes into account the actual interest rate you pay, plus any other fees or charges involved in the deal. In the case of car finance, you’re borrowing the vehicle and your monthly repayments go towards paying off its cost and the added interest (APR). When you see a rate advertised as the representative APR, the lender is required to offer this rate to at least 51% of applicants, but it doesn’t mean you’re guaranteed to receive this interest rate yourself.