Advanced Ford Financing: APR Percentages Explained

Ford Financing

Over the years, buying a car has become kind of a confusing process. While the basics of exchanging money for a vehicle remain the same, thanks to different purchasing options, things have gotten a little complicated — for example, what exactly does Ford 1.9 financing mean? The Kearny Mesa Ford team has the answer to this and other APR questions.

What Is APR?

When looking to buy a new Ford model, you’re are going to keep encountering these three letters. APR stands for annual percentage rate.

A common misconception is that this is the interest rate you will pay on your car loan. While the APR does include the interest rate, it also adds any additional charges from the lender, such as an origination fee, which covers underwriting costs.

Why It Is Important to Pay Attention to APR

If you have your eye on a pre-owned Ford vehicle with what seems to be a favorable interest rate, you may be eager to buy. But, this is why you need to check out the APR. Because this is the actual amount your financing will cost, this gives you a much more accurate view of how much you will be paying.

Cutting Your Financing Costs

It is important to remember that you play a role in what your APR will be. The best way to lower this is to start with a good credit score. You can potentially raise yours by paying off debt or fixing any mistakes on your credit report.

Another way to possibly lower your interest rate is to supply a big down payment for your vehicle. If you have an older car, its value could be a big contributor to your down payment.

Finally, you may want to consider using a co-signer on your loan. Someone with a good credit score could help reduce your APR substantially.

Start the Ford 1.9 Financing Process in San Diego, CA

Any questions about financing or APR? Feel free to get in touch with our Ford dealership in San Diego, CA. We’ll give you any information you need to make smart decisions about your purchase. You can also start the financing process now by filling out our online application.