How does APR on cars and in car dealerships work?

APR, in the car world, usually refers to finance, and means, Annual Percentage Rate. That is the amount, or percentage rate, you are being charged for your loan. Now, when I was with one of the "big 3" they required nationwide, that this number be disclosed to the buyer. So, you are told this number when in the finance department to sign your finance papers. BEWARE, some dealerships will "hold points" on you. I always recommend "outside financing" by the buyer. Simply go to your, or a, bank, or credit union, and tell them you want to buy a car. They will guide you from there. This will eliminate the "points holding" encounter that so many fall for. Which is where you may qualify for, say 5% APR, but the lot ads in another, say, 2%, for themselves. Thus increasing the amount of money the buyer is paying for the car. An outside lender will help protect you from paying too much for the car, and will eliminate an impulse buy, from a pushy salesman. Also, there are a lot of people out there that know nothing of the credit game, therefore, have no idea of what interest rate they are capable of obtaining. Another hint would be to not tell the dealer you have done this. Then negotiate actual price of vehicle, only. They will flex, thinking they will still gert you in finance. After they agree to a low price, then whip out your bank papers.....