It's not a Toyota term, it's a financing term. ALL lenders since 2003, are required to state a comparison rate to help identify the true cost of the loan (per annum). A loan isn't based solely around the interest rate alone; other factors such as the amount loaned, term, repayment frequency, interest rate and other fees/charges applied by the lender all need to be factored it. It doesn't factor in everything though (e.g - early payment fees, govt charges etc) so you should never enter into a loan solely based on the comparison rate. You shouldn't be such a smart**** RE: not knowing what a comparison rate is; if you don't know what a comparison rate is (and even too lazy too google it), you shouldn't be looking to finance your next purchase.