Dealer Services
Dealer Services

Why does the amount of interest I pay change each month?

The amount of interest paid each month changes because the daily interest amount decreases as the principal balance decreases.

At the beginning of the loan, the principal balance is higher, and as a result, the daily interest amount is higher. As you start paying down your principal balance, the amount of interest you pay each month decreases.

Additionally, interest accrues daily and the number of days between payments makes a difference. More days between payments results in more days of interest charges and fewer days between payments results in fewer days of interest charges.

The amount of interest paid each month changes because the daily interest amount decreases as the principal balance decreases.

At the beginning of the loan, the principal balance is higher, and as a result, the daily interest amount is higher. As you start paying down your principal balance, the amount of interest you pay each month decreases.

Additionally, interest accrues daily and the number of days between payments makes a difference. More days between payments results in more days of interest charges and fewer days between payments results in fewer days of interest charges.

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