APR stands for Annual Percentage Rate. This indicates the total cost of borrowing for your auto loan. For example, if you purchased a $10,000 car, with a 5-year loan and your interest rate was 10%. Your total cost of borrowing would be $2748.23, and you would end up paying a total of $12,748.23 for the car. Unlike mortgages, auto loans are not front-loaded. This means that you do not pay more interest than principal upfront. So, if you ended up selling or trading in the car after 3 years, you would have only paid interest on the 3 years you had the loan, instead of the whole 5.