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Auto loan calculated payment by Q doesn't match bank

galojahgalojah Member ✭✭
Using new loan functionality in Q for Mac, I set up my car loan. However, after entering all the details of the loan, the payment and principal/interest split don't match my bank payment. Not sure what to do.

Comments

  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited October 2018
    A car loan is, almost certainly, a "daily interest" loan.  Q's loan
    wizard can only handle "monthly interest loans" (such as a traditional
    mortgage).

    The problem with calculating the interest due on a
    daily interest loan, it that it depends upon when the lender  POSTED the
    payments to the loan.  When you wrote/authorized the payment is
    immaterial.

    On a monthly interest loan, the complete amortization
    is known on the day the loan is taken out, and is only dependent upon
    the borrower making the payments on schedule.

    ***
    The preceding was  originally written about QWin ... but I have no reason to believe that it wouldn't hold true for QMac also ... since it's about the nature of the loan and not an attribute of Q (Win or Mac).
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • galojahgalojah Member ✭✭
    edited October 2018
    Thanks for the info. Seems like this was not an issue on other financial software packages, even thinking back to MS Money.



    I'm having the same issue with my student loan.
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited August 2017
    galojah said:

    Thanks for the info. Seems like this was not an issue on other financial software packages, even thinking back to MS Money.



    I'm having the same issue with my student loan.

    Again, a "daily interest" loan.  Q only calculates the payments for "monthly interest" loans.


    What you need to do for both is to simply post the payment (split between principal and interest) and then edit the splits when you learn how your lender amortized the payment.

    And, as I explained earlier, unless you know the EXACT DAY that the lender posted the latest payment, it's almost impossible to properly amortize the split of a "daily".

    BTW, I'm a former Wells Fargo Systems Audit VP, thus my background with these loans.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • galojahgalojah Member ✭✭
    edited August 2017
    galojah said:

    Thanks for the info. Seems like this was not an issue on other financial software packages, even thinking back to MS Money.



    I'm having the same issue with my student loan.

    Thanks! That's what I've been doing. Makes sense.
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