Car Finance Representative APR
Here at Kandoo Car Credit, we keep things simple. We’ve talked about how we calculate our APR before – but what people really want to know is what actually is our representative APR?
From September 2025 – our representative APR is 22.6%.
Some of our finance packages are more, some are less. Across our Personal Contract Purchase and Hire Purchase deals, our car finance experts are on-hand every step of the way to guide you through your journey to car ownership.
What is APR
APR stands for Annual Percentage Rate. This is the interest rate of finance packages per annum (every year). In our case, this would be the rate of interest due on a car finance agreement. This may not be the rate you actually receive when entering into a car finance deal – as there are several factors that affect the rate that a lender could offer you such as your monthly income, credit history and credit rating.
How is Representative APR calculated?
We calculate our APR based of our last 100 car finance packages that we broker, put them into order then find the 51st deal. This becomes our Representative APR for Car Finance. Our representative APR changes periodically – we update this regularly to keep our customers informed.
Our co-founder Sam breaks this down in this helpful video.
Does Representative APR affect my credit score?
Our Representative APR will not affect your credit score. This rate is a broad average of our previous deals, and acts as a ballpark figure for prospective customers.
Representative Example: Borrowing £8,000 over 60 months with a fixed representative APR of 22.6%, the monthly repayment would be £206.66 with a total cost of credit of £4,400 and a total amount payable of £12400 This is an example only, lender fees may apply, All finance subject to status.