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What does comparison rate mean. Im looking at a car loan and it shows a rate of 8.99pa then a comparison rate of 10pa. what one is it?
Updated: 9/13/2023
Wiki User
∙ 10y agoBest Answer
When you see a comparison rate, usual the comparison rate they show you includes all fees and extras. So the comparison rate of 10 pa, is the actual amount you pay for the loan. The 8.99 pa is the "interest rate" ONLY, not including fees and extras.
They call it "Comparison Rate" , because its the best way to "Compare" it to other loans from other lenders. (Hence the name)
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∙ 10y agoThis answer is:
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