Hello, I am planning to finance my car. I found that this auto company uses true daily earnings method (Texas state) to calculate the finance charges. When talked to the finance officer there, he said that the financing would be just plain simple interest. He went to say some stuff, which I couldnot grasp most of it. So, I thought of asking the forum, if anyone can explain this true daily earnings method using a simple example.....and how is it related to simple interest and not compound interest??? Thanks
If you search on "true daily earnings method" you can find the text of some Texas bills that explain it. Have you compared their terms with, say, a bank or credit union?
