:::RHMT::: Real Home Made Turbo

General Category => General Discussion => Topic started by: Whitey on November 26, 2009, 11:06:45 PM

Title: Car loan payment. Can someone explain how this interest shit works?
Post by: Whitey on November 26, 2009, 11:06:45 PM
This fucking interest thing doesn't make sense to me for my car payment.  I got a fixed 2.9% A.P.R for 36 months for my Accord.  Therefore, I would think that the amount I pay for interest would decrease as I pay off the principal.  However the amount that goes towards interest seems to go up and down even when I make the same payment.  I financed $24,303.95 and here's my payment history:

(https://realhomemadeturbo.com/forum/proxy.php?request=http%3A%2F%2Fimg.photobucket.com%2Falbums%2Fv450%2FHMTWhitey%2Fcarpayment.jpg&hash=f889b27655a955f3633cefba870448ebd11a0651)


I don't understand how my first payment only $48 is going towards interest then in August when the principal dropped $3500 I end up paying $13 more in interest.  I would think making the same payment the amount going towards interest would decrease.  :-\
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: Urban Indian on November 26, 2009, 11:18:18 PM
your rate is based on variable prime interest rate + your 2.9%apr


?
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: snm95ls on November 26, 2009, 11:22:16 PM
It looks like the total interest is being divided up into each day.

You interest for each day should be about 1.93 per day.

Dunno for sure though.

I assume this is an open ended loan, and if that is the case, the way interest is calculated is probably different than the route I took.



Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: Whitey on November 26, 2009, 11:34:58 PM
your rate is based on variable prime interest rate + your 2.9%apr


No, I took a simple interest short term loan.  There's nothing that variates. 

 
It looks like the total interest is being divided up into each day.

You interest for each day should be about 1.93 per day.

Dunno for sure though.

I assume this is an open ended loan, and if that is the case, the way interest is calculated is probably different than the route I took.


Even if the interest is divided up into each day  at $1.93 there's no way the interest payment should go up $13 over 2 months and 5 days when the principal dropped almost $3500.00
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: jagojon3 on November 26, 2009, 11:38:31 PM
Ask your bank, something funny going on
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: Stealthmode on November 26, 2009, 11:42:37 PM
  Those scumbags are crafty. I had some bitch try to sell me a loan the other day and the APR was sumthin sumthin, but she said there was no interest.  ???  Stop paying them. You'll have more money.  :yes:
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: Whitey on November 26, 2009, 11:54:36 PM
Ask your bank, something funny going on


Its through Honda Financial and not my bank.  I'm going to call on Monday but I was hoping someone who deals with this shit more then me could explain wtf was going on.  A fixed interest loan should make sense mathematically...pay more on principal = less interest next payment

  Those scumbags are crafty. I had some bitch try to sell me a loan the other day and the APR was sumthin sumthin, but she said there was no interest.  ???  Stop paying them. You'll have more money.  :yes:


If she's selling you a 0% interest loan then techinally she's just giving you the money...there's no selling involved.  This is why I hate loans cause they try and fuck you comming and going.  When I was car shopping the first thing the salesfucks ask is "what do you want your monthly payment to be?"  And I tell them I didn't give a fuck about monthly payments, I just wanted to buy the car for a certain amount.  saleman can get your car payment to whatever you want but you usually end up paying $30,000 on a $10,000 car. 

Jewish moneylenders   :-\
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: patsmx5 on November 27, 2009, 12:08:06 AM
My guess is that your interest rate is compounded daily based on your principle at that time, and after 30 days that adds up to 2.9%.
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: Whitey on November 27, 2009, 12:10:17 AM
My guess is that your interest rate is compounded daily based on your principle at that time, and after 30 days that adds up to 2.9%.


If that was the case, the interest payment would decrease if I made the same payment back to back which isn't the case based on what they are charging me. 
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: bigwig on November 27, 2009, 12:17:52 AM
Um, look at the dates.  When the payments became effective were on different dates.  As a result, the interest amount varies.

-That's my guess.
Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: patsmx5 on November 27, 2009, 12:18:29 AM
My guess is that your interest rate is compounded daily based on your principle at that time, and after 30 days that adds up to 2.9%.


If that was the case, the interest payment would decrease if I made the same payment back to back which isn't the case based on what they are charging me. 

You have to look at the date they applied your payment to your loan, the "effective date" as labled. Those days vary.

From October 16- November 20, you paid 1.333 / day in interest

From sept 26- Oct 16, you paid 1.44/ day in interest

 From august 21-Sept 26, you paid   1.55 / day in interest

So after every payment, your interst / day went down.

Title: Re: Car loan payment. Can someone explain how this interest shit works?
Post by: snm95ls on November 27, 2009, 01:23:59 AM
It looks like the total interest is being divided up into each day.

You interest for each day should be about 1.93 per day.

Dunno for sure though.

I assume this is an open ended loan, and if that is the case, the way interest is calculated is probably different than the route I took.


Even if the interest is divided up into each day  at $1.93 there's no way the interest payment should go up $13 over 2 months and 5 days when the principal dropped almost $3500.00