What is an Annual Percentage Rate (APR)?

The Annual Percentage Rate (APR) is the total cost of the finance lease expressed as the annual percentage of the amount of financing issued, and includes the total costs of the financing. APR is calculated in accordance with Cabinet Regulation No. 691, Regulations Regarding Consumer Credit, adopted 25.10.2016, and assumes that:  

• the lease agreement remains in force from the day it is signed until the end of the lease term; 
• the financing is disbursed in one payment on the commission fee invoice payment date as set by the financer; 
• the interest rate on the day the lease agreement is prepared applies for the entire lease agreement; 
• the customer (consumer) fulfils their obligations in accordance with the lease agreement. 

The cost of insuring and registering the leased object, as well as other costs which are not determined by the financer, are not included in the total cost of the lease when calculating APR. 

APR is calculated on behalf of the customer (consumer) and is for their information only. APR is not re-calculated while the agreement is active, even when the amounts and figures therein change. APR is calculated so that the customer (consumer) can compare various offers.