How to setup auto loan with deferred 1st payment?
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.....
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.....
0

Comments
If you have a traditional loan, Quicken will handle it, if you enter the correct loan criteria.
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.
-also older versions as needed for testing
-Questions? Check out the Quicken Windows FAQ list
That coincided with my expectation.
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 Young
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.