How to determain car loan interest?

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I can track my mortgage payments from an amortization schedule and see exactly how much I need to pay each month in order to get it paid on in x amount of time (I put this together on an excel spreadsheet). I want to do this with my car loan, but each month the interest is a different rate. One month I see that 36% of my payment went to interest, the next month its 28%, the next month its 31%. Seems to me the best plan would be to send in extra payments during the months that the interest is the lowest so that more goes towards the principal – but how in the world am I supposed to know when they will take more or less interest? Can I ask them to just give me a fixed rate each month?

1 Comment
  1. Reply
    Steve D
    May 16, 2011 at 11:40 pm

    The reason that the interest varies is because they charge interest by the day and some months have more days than do other months. The actual rate does not change. Trying to time the extra money won’t make any difference, since the actual amount of interest taken out will remain the same – in other words, if you send in an extra $ 50, the extra $ 50 will be put toward principle regardless of which month you send it.

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