ALLY CAR LOAN PAYMENT ARRANGEMENTS FULL

If you do not make a payment to cover this additional interest from late payments, your scheduled last payment will not pay what you owe us. Your payment covers the original interest it was scheduled to cover plus the extra three days of interest, reducing the amount of the payment applied to your principal balance. When payments are late, the principal balance doesn’t go down as much from that payment as it was originally scheduled under your contract.

ALLY CAR LOAN PAYMENT ARRANGEMENTS FULL

If you make all of your payments according to the scheduled due dates, your account will be paid in full by the maturity date. As you pay down principal, there is less interest to pay and more of your payment goes to reduce the principal balance. You will find that the principal balance will decrease slowly at the start of your payments compared to later in your payment schedule. The remainder of the payment is applied to principal, assuming there are no late fees or other charges owed. Each payment you make first covers the daily interest that has accrued.

Simple Interest means that you are accruing interest on the unpaid principal balance. We are required to refer to it this way under applicable laws) Interest is what we charge for the credit extended to you it’s the Annual Percentage Rate (APR) disclosed in your retail installment contract. Principal is the amount you borrow, also referred to as the 'amount financed'.

Take the total sales price of the vehicle minus any down payment and/or any vehicle trade–in value and this is the principal balance.

Ally car loan payment arrangements