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When is an APR not an APR?
Being aware that more and more customers are comparing APRs before making a financial commitment, lots of lenders spend significant advertising budgets on telling us how competitive they are. These 'Headline APRs' can be misleading as they may only be available on large borrowings. This will usually be noted within the small print, but it is certainly less prominent and may not be clear until you apply for the loan.
Additionally, many lenders use 'risk-based pricing'. Their headline offering will only be available to those customers with the best credit ratings.
In both the above examples, it may not be until you have gone through the lengthy application process that you realise that the loan agreed may not be what you originally thought it was.
October 2004 saw the first change to the Consumer Credit Act Advertising Regulations in 30 years, which stated that typical APRs must represent 66% of the business expected to be written.
Whilst trying to address the 'Headline APR' problem, that still leaves scope for one in three customers to be disappointed.
Do you want to take that risk?
Rest assured, the Hyundai Car Finance APR agreed in the dealership will be the APR on your agreement.