AER - Annual Equivalent Rate query - HotUKDeals
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AER - Annual Equivalent Rate query

rhubex Avatar
6y, 2m agoPosted 6 years, 2 months ago

looking to settle our car finance and the settlement figure says the interest charged is AER 10.5%, is there a way to use this to calculate APR?

rhubex Avatar
6y, 2m agoPosted 6 years, 2 months ago

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AER is used for savings calculations, it's always in APR for borrowing.

The AER or Annual Equivalent Rate is the official rate for savings accounts, and is designed to allow easy comparisons as it's meant to smooth out the variances between accounts (it's the equivalent of the APR for debts).

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There is a much easier way... Phone the loan company and they will send you a settlement figure with 5 days. This will be an EXACT figure then. They may even give you the figure over the phone!
10.5% is a lot by the way, could of done with shopping around a bit!

i know its a bit high, was a good deal at the time though......... saying that so was my fixed rate mortgage and its really high compared to what i could be paying...... who was to know!!! lol

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