My Auto Tips
HomeDealership Addition

Interest Types
There are two types of loans used by finance companies.  One is called the "Rule of 78" and the other is called a "Simple Interest loan". 
Rule of 78 Loan
The rule of 78 loan is seldom used when buying an automobile. It is a per-calculated loan with the interest built in each monthly payment.

Simple Interest
Simple interest has a daily Perdiem and  will change month to month based on how you pay your bill. 

     Simple Daily Interest Rate Formula
  • Principle Cost
  • Times Interest Rate
  • Divide By 365