When quoting a monthly payment before assessing credit worthiness, what is the industry standard for the APR?

The industry standard for the APR, when quoting a monthly payment before assessing creditworthiness, is based on a running average of new and used vehicle APRs over the previous 60 or 90 days. This approach provides a benchmark that reflects current market conditions and helps potential borrowers understand what rates are generally available based on recent trends. By utilizing this averaging method, lenders can present a more realistic and competitive APR that aligns with prevalent market rates rather than relying solely on isolated estimates or competing offers.

Using a running average ensures that quotes are based on actual data reflective of the interest rates offered in the marketplace, rather than arbitrary figures that may vary significantly from one lender to another. This practice aims to provide consumers with a transparent and fair perspective on potential financing costs associated with their vehicle purchase.