---
id: faq-0017
title: "What does APR mean and how does it affect my payment?"
category: faq
subtopic: financing
page_type: faq
source_url: "https://www.castlecdjrchesterton.com"
tags: ["financing", "APR", "interest-rate"]
questions:
  - "What's APR?"
  - "How does interest rate affect my car payment?"
  - "Why do different people get different APRs?"
related: [financing-options, credit-score-impact, monthly-payment-calculator]
dealer: Castle CDJR of Chesterton
---

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

A lower APR means you pay less interest overall and your monthly payment is smaller. Your APR depends on your credit score, the loan term, vehicle type, and current market rates. Better credit typically qualifies for better rates.

Our Finance team will get you exact APR options once they review your application. Call (219) 250-9487 and they'll show you how different rates impact what you pay each month.