A survey by digital bank Zopa shows nine out of ten UK drivers don’t know how to work out how much their car finance will actually cost, while three quarters can’t explain what APR means.
Annual Percentage Rates (APRs) are fundamental to calculating car finance costs, yet according to Zopa’s figures 77 per cent of drivers don’t know what the abbreviation stands for, while almost 20 per cent say they don’t consider APR when looking at car finance deals.
The figures may not be that surprising, as affordability of a monthly payment is what many buyers tend to look at when agreeing finance terms on a ‘new-to-them’ purchase. Nonetheless, the survey suggests that approach probably feeds into a sense of disgruntlement for the 41 per cent of drivers who feel they have overpaid for cars in the past.

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Study Shows That 90% Of Borrows Don't Understand The Car Financing Documents They Are Signing

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