Say you want to buy a car and you have the cash up front, but you don’t want every paycheck for the next ten years to go toward your auto payments. You’re going to want to finance your purchase. That, my friend, is where APR comes in. APR stands for Annual Percentage Rate.

If you have a bank account or have ever taken out a loan, odds are you probably know what an interest rate is. An APR is similar to that, but it includes all the fees and extra expenses tagged on to your purchase that your average interest rate doesn’t like to tell you about. Keep in mind, your credit score is going to influence that rate heavily. APRs also give you a flat rate that isn’t going to change on you.

To put that into perspective, say you’re looking at buying a new Honda Civic, retailing at about $30,000. Then, say you finance your purchase with an APR of 2.1%. The true cost of your auto purchase will be $36,300. You’ll be paying off that in a flat rate every month for a determined number of months.

Car dealerships will use low APR rates as a means of drawing customers in, as low rates are obviously more desirable than higher ones. It’s important, however, to watch out for rates that seem too good to be true. Odds are, they are. Dealerships will often advertise rates without all the hidden fees included, so always ask questions before stepping into something binding.

All in all, APRs make buying a car easier for you. The fee is set, so you don’t have to worry about it changing. With our lives as hectic as they are, one less thing to think about is definitely a good thing.