A comparison rate helps consumers identify the true cost of a loan. It factors in the interest rate, all fees and charges, and displays it all as single percentage rate.
The comparison rate is required to be disclosed by law for any consumer loan and must be prominently displayed.
For example: A $30,000 car is financed over 36 months:
||Other finance offer
|Monthly account keeping fee
Nissan’s 1% comparison rate is a 1% interest rate with no establishment fees and no monthly account keeping fees.
When you are comparing consumer loans, always seek out the comparison rate to ensure you are comparing apples with apples.