APR - Will There Be Interest If I Pay Off The Finance in 12 Months?

[Kenji4861]

If I were to go on finance and pay off the car in 12 months.. will I get any interest charge from my 13.5% APR? Just curious.
13.5% interest gets tacked on every year right? So what if I pay it off in a year?

 

[jaeger66]

Originally posted by: Kenji4861
If I were to go on finance and pay off the car in 12 months.. will I get any interest charge from my 13.5% APR? Just curious.
13.5% interest gets tacked on every year right? So what if I pay it off in a year?

No, you'll pay 1/12 the APR each month unless you have some special financing deal.

 

[Bullhonkie]

Yes you will pay interest unless you have some special exceptions in your loan as mentioned above by jaegar66. Something like no-interest payments for 12 months or deferred interest for the first 12 months would allow you to repay the loan in 12 months without paying any interest. Those kinds of exceptions are rather rare in car loans though, more common to see those types of loans at places like BestBuy or Sears when they advertise 0% financing for 6 or 12 months.