Calculate a Car Loan with Bi-weekly Payments Instead of Monthly

[@100XPercentX]

I LOVE RALPH HES SO INTELLIGENT AND IM THANKFUL FOR THE KNOWLEDGE YOU SHARE.

[@brazibeatz5187]

i would love a link to thie spreadsheet to see with my numbers

[@Under_PressureSW]

I’ve been paying bi weekly for 6 months and just looked at my account and they’re taking interest out of both payments. Not just my interest rate but they’re taking almost triple my interest. My payment is 600 and I paid 328 last week and they took $180 for interest and $120 toward principal. Freaking ridiculous!

[@brownie3924]

You have to specify Principle for one of your payments.

[@Under_PressureSW]

@ negative. I’ve paid 3 cars off that way and never had to specify. My mortgage is the same way, I make bi weekly and the only take interest out of one payment.

[@bowl300nk6]

Ralph could you please let us download your excel sheet? How is the monthly payment calculated? How is the finance cost calculated?

[@OfficiallyTonyGianni]

Its after 1am i probably shouldn't be trying to do advanced math.. but im trying to find a bimonthly calculator .. my payment is due on the 11th on my new car. I will make the first payment slightly over the amount due on the 1st and i plan to do bimonthly payments of the 1st and the 15th. i will start my first bimonthly payment on the 15th of the same month i made the over full payment ensuring that the second payment on the first makes a complete agreed payment by the 11th.. my finance company has this caveat "Funds received in exccess of the total amount due will reduce your principal balance and also be applied to future payment(s). " This makes me believe that they apply it to the principal but as bait to discourage you saving interest they apply it to future payments hoping you'll take advance of the cheaper payment that month.. how do i do bimonthly or do you have a link for a good one?

[@jusaverage6347]

i don't understand why you wouldn't just take half of the monthly total and make that your bi-weekly payments... seems like you'd shoot yourself in the foot trying to calculate what to pay based on the 26 payment calculations you're doing in this example bc like you said you would possibly come up short on some months that pay 2x vs 3x in one month.

[@thisisshauna6986]

My car payment is due on the 7th of each month. If I pay bi weekly, ( on the 1st and the 15th) will my payment be considered late ?

[@SixMinutesSmarter]

Most likely. If your payment is due on the 7th then you need to make sure that 100% of the payment due (regardless of how it was split) was made before the 7th and after the last payment. Many car loan/finance companies make it tough to split payments or pay extra. Keep an eye on it and see. Some places will treat extra payments as advance payments and won't reduce your principal. Others may not let a split payment because the payment you're turning is technically less than the required.

[@ngee4925]

Very cool, thank you Ralph.

[@FF-xl7yw]

Your math is incorrect. You did NOT take into account the fact that you will save more as you are making 1/2 month earlier so 15 days interest won't be charged.

[@dawnluvsaj8638]

Thank you for this info .. so paying a car payment x 15 days before the due date? Sounds like the way to go. So, my first payment is due on 2/16 what dates would be best when making two payments/bi-weekly payments? to avoid a lot of interest taking out my two my payments. Any info provided & or suggestions is greatly appreciated thx you for advice.

[@JayBlazingProphecy]

@@dawnluvsaj8638true. Making payments earlier helps. When I pay early more money goes to principal compared to making that same payment on my due date. Interest in charged daily so paying early equals less interest.

[@adriangarza7584]

@@dawnluvsaj8638what I heard was to pay 2 weeks before the due date and 3 days before the due date and just keep doing that

[@sassouusasoo3607]

Thanks !This helped alot .