Car Loan - interest on extra days at beginning

splashersplasher SuperUser ✭✭✭✭
edited October 2018 in
Just bought a car.  The first payment isn't for 45 days versus 30 and that adds $5.40 interest to the overall cost of the loan.  
If I put into Quicken the actual amount of the loan, interest rate and length of loan, I get a payment amount that is different from the loan paperwork by $.15 ($5.40 over the life of the loan).  I see and understand why they get their $5.40, but how best to handle it.  
Do I add the $5.40 to the actual cost of the loan?  If I do, the calculated payments (their's and Quicken's) agree.
Is this the right way to game the system?

Win7 and Quicken 2012 Deluxe
-splasher  using Q since 1996 -  QW2016, 2017 & Subscription  -  Win7/Win10
-Questions? Check out the  Quicken Windows FAQ list

Comments

  • fanfarefanfare Member
    edited November 2016
    Whatever gives the desired result ( the calculated payments (their's and Quicken's) agree.) is probably the right way.

    But I don't get it, what do you mean by "actual cost of the loan" and where do you enter that?

    The true test will be on the next monthly payment.
  • splashersplasher SuperUser ✭✭✭✭
    edited October 2018
    "But I don't get it, what do you mean by "actual cost of the loan" and where do you enter that?"
    Poor choice of words since that could have included the interest.  Meant to say, the amount of money borrowed according to the loan agreement.

    Let's say the loan is for $15K, if I use the $15K for the original balance (Quicken's term) I don't get the same payment, but if I add the half month of interest, $5.40, to make it $15005.40, everything evens out.
    -splasher  using Q since 1996 -  QW2016, 2017 & Subscription  -  Win7/Win10
    -Questions? Check out the  Quicken Windows FAQ list

  • Elcid89Elcid89 Member
    edited July 2016
    I've had this exact problem. Quicken doesn't seem to like irregular loan periods.

    After the first payment posts, correct the split on principal / interest to agree with the lender's numbers for that payment, then do a balance adjustment to correct the principal amount. You can credit that expense to the same interest line item that you charge the periodic interest from the regular payments to (since it is additional interest that has been capitalized).
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