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Old 03-19-2017, 11:31 AM   #57
BehindBlueI's
 
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Originally Posted by Snoman View Post
Simply incorrect sir, the "fixed rate" never changes and while payments might be made monthly, interest is compounded daily and readjusted daily.
Interest RATE is fixed, it is not recalculated. Principal balance is recalculated. Go back and read what you first said, that the RATE is recalculated daily.

Again, compounding interval and method makes no difference on small short term loans like a car note. The difference between any major bank is going to be less than the cost of a Starbucks coffee over the life of the loan

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Hence the advertising "we'll give you a 3% loan then in small print the loan institution may or may not tell you about something they refer to as "effective rate of 3.25%"
Effective rate also includes origination fees, which are significantly more important than compounding intervals. I've already shown you the differences.

If you want to figure a given rate for yourself, you can do it easily here:
http://www.calculatorsoup.com/calcul...calculator.php

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Second, your daily interest rate goes steadily down instead of up.
Once again, the RATE is steady. The principal balance changes.

In your oddball daily payment plan, the savings is coming from reducing the principal amount earlier. The interest applied is less because the principal is less, not some oddball accounting trick. You'll also likely to find you're making extra payments, much like bi-weekly results in more principal deduction than twice monthly of the same amount because bi-weekly results in 26 payments vs 24.

I'm not an accountant, but was an accounting minor and did take the classes through the 300 level. It's been awhile, but this is simple stuff. Folks can listen to who ever they like, there's plenty of simple online calculators if you don't know the formulas, and if you learn to read the loan (or investment) documents, it's honestly not tough to compare loans without much of an understanding of the underlying principals. It's done so on purpose, to make it easy to compare, hence the requirement to give APY as well as APR, etc.
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Old 03-19-2017, 11:41 AM   #58
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Originally Posted by BehindBlueI's View Post
....did take the classes through the 300 level...
I can prove my math all day long as I'm in the industry. One of the greatest mis-nomenclatures about loans is that the math surrounding compounding interest matches the timing of payments (false). It almost never does because there are no laws regulating it and the calc is abused by institutions in their favor. Generally speaking, I'll simply agree we're likely talking about the same thing from two different perspectives and blame the text medium for the level of detail I'm unable to get you to see.

I will however, challenge you to take any of your loans (other than mortgage) and pay them daily one month. Then go log into your online account and see the difference. There is simply no scenario in which paying monthly on a loan is justifiable.
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Old 04-12-2017, 08:46 PM   #59
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I used US Bank to finance my 2016 Silverado at 1.80% a year ago. So far so good. The interest rate is low enough that taking the effective rate is essentially a waste of time. Even continuously compounding it would be a drop in the bucket. I burn more cash on a hard acceleration. Depreciation is my more justifiable concern but inevitably going to occur so oh well. Nice cars cost money.
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Old 04-13-2017, 02:14 AM   #60
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I use financial partners credit union CA only. For me I got a 4.25% interest rate only looking at 1500$in interest at the end of my 4 years. No penalty for paying off earlier then the 48 months loan chance of refinance after 2 years really happy with my decision. In the past when I tried to get a car I was looking at 28% interest on a 2009 Mercedes Benz E500. That would of been a horrific deal. My cars worth 14988$ witch now has 25,000 miles on it on a 2012 I am pretty sure I'm making out very well......i almost got a fiat 500 abarth with 40k miles for 12k loan. There dropping hard in value.
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Old 04-14-2017, 02:16 PM   #61
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Originally Posted by Snoman View Post
I can prove my math all day long as I'm in the industry.
Let's see it.

Even if it rounded down every time, even it it was $1.009999999 and it rounded it to $1.00, you're saving a maximum of a penny a day. Show me the math of how that works out.

Yes, if you make a payment every day you will pay your loan off faster. Not because of some rounding error. Because the principal is reduced faster. If I pay $10 a day vs $300 a month, one I'm going pay more over the year with $10 a day ($3650 vs $3600) AND my balance is going to be reduced earlier. I'm paying 29 days less interest on the first $10, 28 days less on the second $10, etc.

Of course, unless you are an Uber driver or a waiter or something and actually get paid daily, most of us have no reason to do that. If I can pay $150 on the first day of the month when I get paid, there's no benefit to only paying $10, then paying $10 the next day, etc.

So, let's see the math. Show me your rounding trick that the industry taught you.
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Old 04-15-2017, 03:18 AM   #62
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I say find one bank you are comfortable with and enjoy and stick with that bank exclusively. I used Ally back in 2012 when I got my 2010 2SS/RS. I went to the dealership with financing thru Capital One and they got Ally to beat the best deal Cap 1 could give me. So I was pleased needless to say. A few weeks later I got a letter in the mail from Ally saying that they gave me the wrong APR amount. Get this, they said that they actually gave me a higher APR than I was supposed to have. So it was lowered by 0.50% which pleased me. I never had any issues with payments or anything. However I refinanced after a few months thru Capital One. I have also dealt with TD financing and M&T Bank financing. I will say this. I have no issues with either of those banks at all. But I like Capital One's website much much better. SO I pretty much figure I'll stick with them from now on. Again, I didn't have a problem with Ally. But unless I get a killer deal, I probably wouldn't use them again.
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Old 04-15-2017, 06:27 PM   #63
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i have no complaints zero percent for 72 months i am half way done pay online every
month
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Old 04-21-2017, 08:33 AM   #64
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Strange, i refinanced my first camaro with another bank. They sent me the title real quick to remove the lien and place it with my other bank. Sorry you guys had bad experiences..
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