Tag Archives : Rule of 78

Auto Shoppers Beware-Rule of 78 vs Simple Interest

The Rule of 78 is a practice by the automobile lending industry which tricks the borrower into receiving a lower rebate when the car loan is paid ahead of schedule or before the end of the term of the loan. This rule is also known as the sum-of-the-year’s digit method, factoring 1 through 12, representing […]