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New Auto -Loan - First Payment 90 days

Answered by: 
Richard Insley

Question: 
When advertising a new car loan up to 72 months with 90 days until first payment, does the disclosure need to read 75 months, and does the payment example need to be calculated using 75 months rather than the 72 months?
Answer: 

The advertised APR and the payment schedule on which it is based must reflect the terms to which the parties will agree, including the extended first payment period. You've hit a trigger term and are required to disclose the representative payment schedule. You will say something like "72 monthly payments of $$$.$$ beginning in 90 days." Interested applicants can do their own math if they want to know when the final payment will occur.

First published on BankersOnline.com 2/02/09

First published on 02/02/2009

Filed under: 
Operations
Filed under operations as: 
Auto
IT

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