Q: Why is my car loan payoff amount different from my current balance?
Apr 07, 2021

Shouldn't these two figures be the same? This is confusing; can you clear this up for me?

Answer provided by
Eric Schad
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

“Since a car loan continuously adds interest, your car loan payoff amount will be more than your current balance. This is because the interest (usually compounded daily) is added to the current balance you owe. “

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