Financing miscalculation- any accountants out there?

[1MoreUsername]

So I'm taking delivery of my car in about 8 hours and I got the Retail Installment Contract about several hours ago to review. No matter how hard I try, I can't figure out how to reconcile my expected loan payment (based on several methods of calculation) with the one in the contract (Wells Fargo).

Here are the numbers I'm working with:

Amount financed: $84,825.00
Interest rate: 0.99%

Wells Fargo calculates my monthly payment at $1214.45 with the total finance charge over the life of the loan at $2615.40.

When I calculate using the loan template in Excel or multiple other online calculators, I get a monthly payment of $1213.95 with total finance charge over the life of the loan of $2579.22

The difference in the calculations is: $0.50 per month.

$0.50 per month is not a major issue in the grand scheme of things but to satisfy my own curiosity I do wonder how they came up with that number and what that $6/year is going towards.

I'm sure some of you here have some financial background. Anyone with more sleep and more brains want to try to get this through my thick head?

 

[Hey_Hey]

They opened a money market in your name and have you contributing $0.50 per month.

Oh wait......no respectable financial firm would open an account without your consent. Forget that.

#EightIsGreat

 

[Max*]

You financed for 72 months, right? I get $1,213.95 too.

Seems they financed you for $84,860 instead of $84,825. Was there a $35 application fee?

 

[bonaire]

Ever see the movie "Office Space"? The guys in IT are scheming.

 

[cpa]

Could it be the 360 vs 365 day year that lenders use? I do not have that sophisticated a calculator available to me. But I do know that those five days can make small increases to monthly payments.

 

[Navsarin]

Could be a measure of how interest is compounded by one algorithm vs another rounding up or down tenths of a cent would do that over long periods of time.

$6...lol. Maybe cut out one Starbucks grande latte and your golden

Congrats on your purchase!

 

[SSedan]

Is there a $0.50 monthly finance fee?

 

[1MoreUsername]

Could be a measure of how interest is compounded by one algorithm vs another rounding up or down tenths of a cent would do that over long periods of time.

$6...lol. Maybe cut out one Starbucks grande latte and your golden

Congrats on your purchase!

No need to cut out Starbucks- I feel like I'd be tempting fate with white seats

But, to clarify, I'm not trying to raise a stink about paying $0.50 more per month. I was just curious as to why the discrepancy was there but for curiosity only.