Auto loan with Ally, pay off early but not taking off any interest but charging interest.?

I want to pay off my car early but called Ally and they gave me the pay off amount and it is higher that what I owe by a hundred or so dollars. I thought all auto loan companies discount the interest off the amount you are paying off. I am confused and have asked question after question and they never give me a straight answer and when I ask to talk to supervisor they give me to another person but all they will tell me is that I have to pay what I owe. Can you help me understand this concept.


I have not paid anything towards the principle and I bought the car 2011 brand new. I would have thought that since I am paying off a few years early that they would knock down the interest off of everything that I owe but they don't. I have to pay all the principle (of course) and all of the interest off of the rest of the loan.

Update 2:

...what I mean is that I have to pay all the interest on the months ahead also.

Update 3:

I guess I really missunderstood. See I had a car loan thru capital one and when I paid it off the quote they gave me was less than what I owed because they deducted the future interest off of the pay off. In other words I only had the pay the principle that was still owed and none of the interest. With ally I still have to pay the interest no matter what. My daughter had ally and she went thru the same thing and she had to pay all of the interest. I owe right now 14, 967.00 and my pay off is 15,008. I just don't understand why some loan companies take the interest off when you pay off and others still make you pay the interest on the future payments.

9 Answers

  • Steve
    Lv 6
    8 years ago
    Favorite Answer

    The $100 is becase of this. Your last payment was on the 1st. You called on the 15th to get the payoff amount. In those 15 days you have racked up $100 in interest. Even in the time it would take for you to send in your payment you may add up $15-$20 in interest. They usua;lly just forgive that if it is within reason.

    What the interest you are going to save is the interest on the rest of the loan you are not going to have to pay once you pay off your principal amount.

    So when you ask for a payoff amount this is thier math:

    Loan balance + accrued interest since past payment = payoff amount

    They may have an early payoff fee built into the contract. But i would think they would tell you that.

  • 4 years ago


    Source(s): Easy Car Loan Approval -
  • 4 years ago

    Ally Auto Loan

  • Anonymous
    6 years ago

    I just took home a car loan contract to review it - the small print on the back was written in a devious sort of way - sure you can prepay the loan early but the interest is paid fist during the loan than the principal last - so that means they get the interest of the entire loan even if you pay off the loan amount on day #1. I tore up the contract that was not signed. Some states allow this predatory type of lending. F#ck Ally!!

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  • kroner
    Lv 4
    4 years ago

    Ally Auto Payment

  • 6 years ago

    I am running into the same thing, and if you look at your payment history, the payments are applied randomly, sometimes $100 to interest, other times over $150 in interest in another month, even though not late. Shady. Bottom line, do not get an Ally auto loan.

  • 8 years ago

    Not sure how you know what you still owe if not from the bank. When you make car payments you pay interest on the balance at the time of your payment, not on the balance after your payment. Your first payment is one month after you originate the loan, which means the interest on your first payment and on every other payment is for the PAST month, not the month ahead. Therefore, when you pay off your balance early, you still owe interest from the month past.

    No. You are NOT paying interest on months ahead, ONLY on the month past. Your monthly remaining balance DOES NOT include interest on future months. Future interest is NOT included and you DO NOT owe it. You misunderstand how loans work.

  • 8 years ago

    Welcome to the wonderful new world of Obama Banking. The Federal Government owns 75% of Ally Bank and the government runs it. They right their own rules.

  • Keren
    Lv 6
    4 years ago
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