Payment from Loan Company different than PMT

[scooter262]

Hi all,

I just bought a Camry, and am financing through TFS (Toyota Financial Services). On the paperwork, it says the rate is 5.5% and I am borrowing $11,306 for 4 years, and that makes my monthly payment $263.54.

However, when I enter these numbers in Excel and use the PMT formula, it returns a monthly payment of $262.94 --> $0.60 less than my actual monthly payment. To get to my payment, I had to set the APR to 5.617%.

Does anyone know what kind of trick the financing company is pulling? Is there a different or modified formula I should be using?

For 60 cents a month, I can't really complain to anyone, but I'd just like to know how TFS is manipulating the numbers to get a slightly higher payment than they should be getting.

 

[Dave Patton]

Did TFS add fees or other charges?
How is the interest rate described?

 

[scooter262]

In the "Federal Truth-in-Lending Disclosures" section of the Finance form, there is a table that lists APR, Finance Charge, Amount Financed, Total of Payments, and Total Sale price.

APR - 5.50%
Finance Charge - $1343.92
Amount Financed - $11306.00
Total of payments: $12649.92

So, that's it -- it just says that the rate is 5.50% and then shows calculations that differ from what I should be seeing.