Auto loan calculating monthly payment incorrectly

Michael Rosen
Michael Rosen Member ✭✭✭
I'm inputting a loan for a car purchased 2/24/22, loan balance $22,463.49 at 1.90% for 60 months.  The monthly payment is supposed to be $393.10 but Quicken is calculating $392.75.

I'm running Quicken Premier vR38.30, build 27.1.38.30 on Windows 10 Home v 21H1 build 19043.1586.

Thanks
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Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Quicken's loan wizard simply doesn't have the ability to properly calculate most auto loan payments and this problem has been brought up many times.  Car loans frequently have unique terms like precomputed interest and daily compounding, neither of which Quicken's loan wizard can handle.  So frequently Quicken's loan wizard can get "close" but not "exactly right."
  • UKR
    UKR SuperUser ✭✭✭✭✭
    I'm inputting a loan for a car purchased 2/24/22, loan balance $22,463.49 at 1.90% for 60 months.  The monthly payment is supposed to be $393.10 but Quicken is calculating $392.75.
    ...
    Edit the scheduled reminder for the monthly payment. Add the difference between 392.75 and 393.10 as "Additional principal" so it applies to all future payments.
    Do not forget to review each payment with the payment amounts shown on the monthly statement from the finance company. Enter additional small amount differences as needed as Additional principal.
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    Q's Loan Wizard can only handle, is only INTENDED to handle, Monthly Interest loans.
    Auto loans are almost always Daily interest, where the interest due in this payment is partially dependent upon what day of the month you made the last payment ... and upon how many days in between (days of the  month).  Q can't possibly know when your last payment was posted, so it can't properly calculate the amortization of this payment.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Michael Rosen
    Michael Rosen Member ✭✭✭
    Tom Young said:
    Quicken's loan wizard simply doesn't have the ability to properly calculate most auto loan payments and this problem has been brought up many times.  Car loans frequently have unique terms like precomputed interest and daily compounding, neither of which Quicken's loan wizard can handle.  So frequently Quicken's loan wizard can get "close" but not "exactly right."
    Astounding that they have the nerve to actually have an auto loan choice for setting up a loan.

    Now I'm remembering the last car loan I added I fudged the interest rate to get the correct payment.
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