What is representative APR?

Representative APR (the APR bit stands for Annual Percentage Rate) and is a term used by finance companies (lenders) to promote the rate they can offer which is representative of the rate offered to at least 51% of people (borrowers) who apply. But beware - the initially attractive representative APR rate advertised will only benefit just over half of applicants - the rest will have to pay much more. Get to grips with car finance terminology thanks to our jargon-busting guide.