Auto Loan Pay Off question?

I have an auto loan. My loan is not good. I have a very high interest rate. I went through with the loan hoping to improve my credit score. A year has past, and I am considering paying off my loan. I was on my online account, and clicked on ?pay off quote?. I noticed the Pay off quote increases every month.
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The loan balance actually increases every day. A simple interest loan means that interest is calculated daily on the loan balance. This is why when you obtain an auto loan payoff quote, you are given a "10 day" payoff amount which gives you time to get your payment in and ensures you send enough to pay off the balance in full.

Also, a good place to check is...

http://autoloan.lowratetoday.com/

Best of luck to you.
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Yes the payoff quote increases every month because of the interest being added onto it. As you make payments you pay for all the interest added that month and a little of the actual amount owed on the car.....The payoff actually goes down every month but not untill your payment is made and you have to look at your payoff on the same day every month because interest is compounded daily.


You should try refinancing at a credit union just be sure to not take out the full 36-60 month term all over again.....just see how many payments you have left on your current loan and refinance for that many months. It will lower your payment and you will pay off your car in the same amount of time