APR
Annual Percentage Rate is the standardised yearly cost of borrowing, including interest and most fees — the one number that lets you compare finance deals like for like. A lower APR means cheaper borrowing: on a £20,000 loan, the difference between 6% and 10% APR is roughly £1,300 over four years. Always compare APRs, not just monthly payments, and check whether the rate is fixed or variable.
Example
Two PCP deals at £350 a month can cost very different totals — the one with the lower APR is the cheaper loan.