My car loan lender is confusing me... read the rest...?

So I%26#039;m having all sorts of issues with my car loan lender. On my online statement it shows a balance of 1700 and some change. So I asked the customer service rep if I could just pay the whole loan off right now and asked her to verify the amount I owe. She said that the principal is 1700, but that%26#039;s not what I owe, and she could fax me the true amount in 2-3 days. Now, I%26#039;m a business graduate, but was not a finance major. Why does that sound so wrong to me? If pay the total principal, wouldn%26#039;t that pay off the loan because there is no time for interest to accrue? Am I missing something or is she giving me a line of crap? What%26#039;s going on?

My car loan lender is confusing me... read the rest...?

Your interest may accrue at loan inception. You took out a loan. Trust me, there is interest to be paid. You should have read it carefully and understood all of your liability prior to signing on the dotted line. Caveat emptor. Expect to pay more.

My car loan lender is confusing me... read the rest...?

No, she is playing you straight. There is very likely a prepayment charge in the lease that you signed.

My car loan lender is confusing me... read the rest...?

The amount you owe should be a lesser amount because of the early payoff.

My car loan lender is confusing me... read the rest...?

as far as I can tell your right unless there is something in your contract (which I%26#039;m sure you read throughly) which states otherwise, you never know what there going to try and sneak in

My car loan lender is confusing me... read the rest...?

Your finance company is crappy. I gathered that from your first post. If you can pay it off, do so. Wait a day or two and be sure to get that payoff amount. Insist on it. If they continue to give you the runaround then contact your state%26#039;s attorney general office and file a complaint.

My car loan lender is confusing me... read the rest...?

Yes and no. Yes because if it%26#039;s been more then 1 second since your last billing statement, you have accrued interest that hasn%26#039;t hit the balance yet. No because they should be able to tell you the pay off amount at any time and, in fact, most states have laws requiring that capability. Call back and ask to speak to a supervisor, maybe you got a rookie.

My car loan lender is confusing me... read the rest...?

Unless you made a payment today that satisfied interest thru today you are going to owe additional. Interest is accruing daily and is satisfied each month up to the day the payment is ran. Your payoff statement should show your Prin Balance, Interest due and then also the Per Dium, which is interest per day to be addedfor each xtra day it takes you to send the payment in.

My car loan lender is confusing me... read the rest...?

Well there is daily interest...it shouldnt be too much more though depending on your interest rate....I%26#039;m not sure who your lender is but on the website it should tell you the payoff quote is good till.....a certain date and that should be the amount...

My car loan lender is confusing me... read the rest...?

On almost any installment loan they have something at the bottom on the page that says %26quot;call for payoff amount%26quot;. interest is added daily so you will owe a little bit of interest between what they say you owe and when they actually get your check.

If you don%26#039;t want to wait, send them $1725 now and let them send you a bill for 2 cents or whatever the difference is going to be--make sure to pay it because otherwise you%26#039;ll be paying interest on the interest!

My car loan lender is confusing me... read the rest...?

It depends on the contract you signed. If you signed a contract without a early payoff aggreement, then you are at the will of the bank. They can charge you the entire interest of the original loan, even if you pay the principle early. Next time you purchase a vehicle, make sure you have it stated that there are %26quot;NO PRE-PAYMENT PENELITIES%26quot; or something similar to that on your contract. Not a seperate form, but the actual contract. If you have that clause, then you should have no problems paying off your loan early

My car loan lender is confusing me... read the rest...?

I don%26#039;t think there is a prepayment clause in the contract for most auto loans, but there is a daily interest charge. You will also encounter this in credit cards that you don%26#039;t pay in full each month and home loans as well. We called it the %26quot;creeping finance charge%26quot;.

Some home equity line of credit loans do have prepayment clauses that specify up front what the fee would be if paid off in full in the first two or three years.

It shouldn%26#039;t take 2-3 days to calculate it unless she has to send it to another department. Customer Service may not have this ability. We could calculate the actual payoff immediately, take the payment at the bank and mail it to the loan department effective the date of the payment.They would then send the title to the borrower and file the payoff.