APR-Led Finance

Why We Use APR not Flat Rate

A while back we used to give all of our finance quotes in flat rate but we found that it was quite confusing for customers to compare other quotes like-for-like, so we switched to APR.

Which company do you think is offering the better deal here?

APR versus Flat Rate

Answer: the bottom quote is cheaper. An APR takes into account all costs and fees and gives you an overall rate.

The Flat Rate is lower in the top option but because of the fees it ends up more expensive overall.

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APRs in use

If you’re looking to get any form of finance such as credit card or bank loan you will be given an APR so you can compare like-for-like quotes.

To make this simpler we’ve created a video that you can view below.

The video was originally created for dealerships but we hope you agree it gives an excellent overview of Flat Rate vs. APR.

When buying a car having an APR gives you the chance to see if a HP or PCP deal is better than getting a bank loan or credit card (if you're able to use these). 


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