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How to setup auto loan with deferred 1st payment?

Unknown Member
edited October 2018 in
Hi -

I have an auto loan with a bank that I can't use the auto-download feature, and have to enter manually. But I hit a snag that I can't seem to figure out, and hoping someone can help offer advice on how I properly punch this into Quicken. Here's the details:

Loan amount: 29,352.73
Interest rate: 3.22%
Term: 60 months
Monthly payment: 531.00

So when you do a normal auto loan calculation using above numbers, the payment amount comes to $530.30. However, when I asked the bank how my payment is 531, they explained this was due to the loan starting on 7/18/11 but the first payment being deferred until 9/1/11, and that extra amount is from the interest accrued during the deferral period.

How in the heck do I punch this into Quicken and get the right payment/principal/interest amount in my payments?

Thanks in advance for any help or advice.....

Comments

  • Howard RoarkHoward Roark Member ✭✭✭✭
    edited August 2016
    Quicken will not handle non-traditional loans (such as "simple interest" loans).

    If you have a traditional loan, Quicken will handle it, if you enter the correct loan criteria.
  • splashersplasher SuperUser ✭✭✭✭✭
    edited October 2018
    The closest I came to getting my car loan to fit (my first payment was 45 days from start) was to allow Quicken to come up with its own numbers, 530.30 in your case for the combined P&I and then did an additional interest line in the split for the difference, .70, in your case.

    It was almost correct, but not always. I learned my lesson with that loan, from now on, the first payment will be at 30 days whether they want to or not. IMO, it is a scam the finance manager does to get more money which probably goes to him/her due to a deal with the finance company.
    -splasher  using Q since 1996 -  Subscription  -  Win10
    -also older versions as needed for testing
    -Questions? Check out the  Quicken Windows FAQ list

  • Howard RoarkHoward Roark Member ✭✭✭✭
    edited August 2016
    splasher said:

    The closest I came to getting my car loan to fit (my first payment was 45 days from start) was to allow Quicken to come up with its own numbers, 530.30 in your case for the combined P&I and then did an additional interest line in the split for the difference, .70, in your case.

    It was almost correct, but not always. I learned my lesson with that loan, from now on, the first payment will be at 30 days whether they want to or not. IMO, it is a scam the finance manager does to get more money which probably goes to him/her due to a deal with the finance company.

    I got the same results. But when I changed the payment amount in the loan setup to $531 -  Quicken added the payment difference amount ($.70) to the loan principal payment amount.

    That coincided with my expectation.
  • Unknown Member
    edited August 2016
    Using your information, here's how to set that up.

    Using some math I figure you bought the car on or about 8/17/2011 and that the 14 days of interest brought your opening loan balance on which the payments were calculated to $29,391.22.

    1st, create the loan account in Quicken and enter an opening balance as of 8/17/2011 of $29,352.73.
    2nd, make an entry in this account as of 9/1/11 in the amount of $38.49 (offset to car loan interest) to bring the loan's balance as of 9/1/11 to that $29,391.22.

    "Car loan setup" picture below shows this.

    3rd, using the Quicken loan wizard establish the Loan Details, which are an opening date of 9/1/2011, original balance of $29,391.22. This will allow Quicken to calculate the $531.00 monthly payment your are actually making.

    The two "Q calc of loan" pictures below show this.

    Tom Youngimageimageimage
  • Unknown Member
    edited July 2016

    Using your information, here's how to set that up.

    Using some math I figure you bought the car on or about 8/17/2011 and that the 14 days of interest brought your opening loan balance on which the payments were calculated to $29,391.22.

    1st, create the loan account in Quicken and enter an opening balance as of 8/17/2011 of $29,352.73.
    2nd, make an entry in this account as of 9/1/11 in the amount of $38.49 (offset to car loan interest) to bring the loan's balance as of 9/1/11 to that $29,391.22.

    "Car loan setup" picture below shows this.

    3rd, using the Quicken loan wizard establish the Loan Details, which are an opening date of 9/1/2011, original balance of $29,391.22. This will allow Quicken to calculate the $531.00 monthly payment your are actually making.

    The two "Q calc of loan" pictures below show this.

    Tom Youngimageimageimage

    Thanks for your advice Tom. I assume the fact that I bought the car on 7/18/11 doesn't make a difference here? Sorry I'm new to Quicken, and struggling a little with your instructions. It sounds like I set up a manual loan account, then use the wizard to square up the details? When I setup a new loan account manually, it looks like the wizard screenshots in your 2nd and 3rd image...not sure if there's a more manual way to setup the loan account in your 1st step? I tried that anyway, entered in the interest transaction, and tried to find a way to go back to loan wizard, but I couldn't figure out how to get there. Hate to be a pain, but could you elaborate?
  • Unknown Member
    edited July 2016

    Using your information, here's how to set that up.

    Using some math I figure you bought the car on or about 8/17/2011 and that the 14 days of interest brought your opening loan balance on which the payments were calculated to $29,391.22.

    1st, create the loan account in Quicken and enter an opening balance as of 8/17/2011 of $29,352.73.
    2nd, make an entry in this account as of 9/1/11 in the amount of $38.49 (offset to car loan interest) to bring the loan's balance as of 9/1/11 to that $29,391.22.

    "Car loan setup" picture below shows this.

    3rd, using the Quicken loan wizard establish the Loan Details, which are an opening date of 9/1/2011, original balance of $29,391.22. This will allow Quicken to calculate the $531.00 monthly payment your are actually making.

    The two "Q calc of loan" pictures below show this.

    Tom Youngimageimageimage

    No, that date was just an estimate.  Any date would do as both those entries really just get the opening balance of the loan correctly stated and create an interest expense for the deferral period.
  • Unknown Member
    edited July 2016

    Using your information, here's how to set that up.

    Using some math I figure you bought the car on or about 8/17/2011 and that the 14 days of interest brought your opening loan balance on which the payments were calculated to $29,391.22.

    1st, create the loan account in Quicken and enter an opening balance as of 8/17/2011 of $29,352.73.
    2nd, make an entry in this account as of 9/1/11 in the amount of $38.49 (offset to car loan interest) to bring the loan's balance as of 9/1/11 to that $29,391.22.

    "Car loan setup" picture below shows this.

    3rd, using the Quicken loan wizard establish the Loan Details, which are an opening date of 9/1/2011, original balance of $29,391.22. This will allow Quicken to calculate the $531.00 monthly payment your are actually making.

    The two "Q calc of loan" pictures below show this.

    Tom Youngimageimageimage

    I ended up editing my reply I think just as you were responding, see revised comment above if I could trouble you for a little more guidance. Thx again in advance for your help.
  • Unknown Member
    edited July 2016

    Using your information, here's how to set that up.

    Using some math I figure you bought the car on or about 8/17/2011 and that the 14 days of interest brought your opening loan balance on which the payments were calculated to $29,391.22.

    1st, create the loan account in Quicken and enter an opening balance as of 8/17/2011 of $29,352.73.
    2nd, make an entry in this account as of 9/1/11 in the amount of $38.49 (offset to car loan interest) to bring the loan's balance as of 9/1/11 to that $29,391.22.

    "Car loan setup" picture below shows this.

    3rd, using the Quicken loan wizard establish the Loan Details, which are an opening date of 9/1/2011, original balance of $29,391.22. This will allow Quicken to calculate the $531.00 monthly payment your are actually making.

    The two "Q calc of loan" pictures below show this.

    Tom Youngimageimageimage

    Here's what amounts to an easier way to get this going.  Go to Tools > Account List > Add an Account > Loan.  Enter the name of a financial institution, a name for the loan and select an "Auto Loan" as the loan type.  Enter 8/1/2013 as the opening date (I was using the wrong date in my above answer) and $29,391.22 as the opening balance, your 3.22% rate and 60 month term.  That will get your loan established with the correct monthly payment.  It's really the $29,391.22 figure that gets you to the "right" answer.
  • I am about to lose my ever lovin mind!   Same scenario...

    7/31 - $19941.07 purchase
    6.730% for 60 months
    8/14 - First payment

    393.37 - payment
    295.94 - principal
    97.43 - interest

    My workaround, which I don't know if it will work was to put a negative line for the interest and additional principal.  
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