It pays to pay off your debts on time! After buying a car from Great Lakes Honda West and securing financing, your monthly payments will be impacted by the auto loan's APR, or 'Annual Percentage Rate.'

Keep making on-time payments and building credit so that you have lower car payments when it's time for another vehicle. Our Honda finance center in Elyria, OH is here to provide affordable financing for Cleveland customers while helping them understand APR and how it impacts their monthly car payments.

How APR Works with Your Auto Loan from the Great Lakes Honda West Finance Center

The Annual Percentage Rate is a proportion of the auto loan and is used to calculate interest accruals over the course of a year. The APR gets multiplied by the car's principal balance to determine interest payments.

A lower APR leads to lower monthly payments, while a higher APR leads to higher monthly payments, as Cleveland customers have to pay more in interest.

APR rates differ based on credit scores and credit history. Credit scores range from 300 to 850, with the following tiers playing a big role in APR.

  • Excellent: 750 or Above
  • Good: 700-749
  • Fair: 650-699
  • Poor: 600-649
  • Bad: Below 600

If Sheffield shoppers have a good or excellent credit score, they can expect their APR to hover around 5%. If Oberlin customers have bad credit, their APR may be between 15 to 20%. That means they'll pay three to four times as much interest on their new Honda or a used car from our Elyria, OH lot.

Average interest rates differ for new and used cars. By choosing a shorter loan term with a lower APR, Amherst shoppers will spend less time paying off the loan, which will accrue less interest.

Finance Your New Honda or Used Car with the Financial Experts in Elyria, OH!

Now that North Olmstead shoppers know a little more about APR and what they can expect with auto loans and interest rates, they can come shop for their dream vehicle at Great Lakes Honda West. Browse our new inventory for the latest Honda cars and SUVs or buy an affordable used vehicle from our pre-owned inventory.

Our Honda finance center in Elyria makes it easy to finance any new or used car. Our helpful financial professionals will work to get you qualified for an auto loan featuring the lowest APR you're eligible to receive. Finance your next car at Great Lakes Honda West!