Understanding Your Auto Loan
Now that you have an auto loan with Wells Fargo Dealer Services, you may have some questions — how is the interest calculated on my loan, how are my payments applied, and more. Please select a topic below for more information. We’re here to help.
What is APR?
APR stands for annual percentage rate. The APR is a standard calculation used within the lending industry which enables consumers to compare the cost of different loans. The APR is the cost of credit expressed in a yearly percentage rate. The APR includes:
Costs to obtain the loan, if applicable
How is the interest calculated on my auto loan?
Your vehicle is financed with a simple interest loan — this means that interest is accrued daily on your outstanding principal balance. For instance, if you had an outstanding principal balance of $10,000 with a 10% interest rate, you would pay $2.74 in daily interest:
$10,000 x 10% ÷ 365 days = $2.74 (366 days for leap year)
Automatic Loan Payment (ALP)
Through our ALP program, your payment is debited from your designated checking or savings account each month free of charge. There is no enrollment fee for the Automatic Loan Payment program, and you can enroll online through eServices.
Check or money order
Checks or money orders payable to Wells Fargo Dealer Services can be sent to the address below. Please remember to fill in all sections on the money order. Please include the payment coupon from your statement and write the account number on the check or money order. Do not send cash.
Payments can be made from your checking or savings account to your loan account by calling 1-800-289-8004. A $6 fee for an automated telephone payment, and a $12 fee for an agent-assisted telephone payment, may be applicable based on the status of your account.
Wells Fargo Dealer Services
PO Box 17900
Denver, CO 80212-7900
Wells Fargo branch
Payments can be made at any Wells Fargo banking location at no charge, and a Wells Fargo account is not required. Please specify if a portion of the payment should be applied to the principal balance.
Payments can be made through your financial institution, if applicable.
Payments are accepted at offices nationwide. You will need your Wells Fargo Dealer Services account number and Receive Code 1812. Third-party fees apply. Find a MoneyGram location.
Payments are accepted at offices nationwide. You will need your Wells Fargo Dealer Services account number, Western Union City Code CATX, and State Code TX. Third-party fees apply. Find a Western Union location.
Loan interest — the daily interest amount due on your loan
Collateral Protection Insurance (CPI) interest — the amount of interest on your insurance premium (if applicable)
Principal — the principal payment amount due on your loan
CPI principal — the principal payment on your insurance premium (if applicable)
Payment variance — any amount remaining due from previous payment
CPI variance — any amount remaining due from previous insurance premium payment (if applicable)
Other charges — fees such as nonsufficient funds
How much of my monthly payment is applied toward interest?
The amount applied toward interest each month may vary. With a simple interest loan, you have a daily interest amount and will pay interest on the number of days between your payments. For instance, if there are 20 days between your monthly payments, the interest due will include 20 days of interest. If there are 30 days between your monthly payments, the interest due will include 30 days of interest. In this example, the interest portion of the payment amount would vary by 10 days at the daily interest amount.
If you defer a monthly payment, this will extend the term of your loan, and the interest will continue to accrue until the next payment is made. The outstanding loan balance will continue to accrue interest until the loan is paid off.
The total interest paid over the term of your loan may be different from what is shown on your loan agreement, depending on whether you make payment on time, early, or late. Generally, if you pay your loan early, the amount of interest will be less, and if you pay your loan late, the amount of interest will be more.
What happens if I pay less than my scheduled payment?
If you pay less than the total amount due, we apply the funds in the same sequential order and then determine whether a variance (i.e. amount due) is created and/or the due date is advanced. If an amount is due, it will be added to your next scheduled payment amount. The past-due amount may impact your credit rating and you may accrue late charges.
How to make a principal payment
You can make a principal payment on your loan by mail or at any Wells Fargo branch. If mailing a principal payment, please designate this on the payment coupon from the bottom of your statement, and on your check or money order. We will then apply your payment to the principal balance after any past due amounts (including fees and other charges) are paid.
What are the fees and charges on my loan?
Please refer to your Retail Installment Sales Contract or your Note and Security Agreement for information regarding late fees, finance charges, and other fees or charges applicable to your loan account.
Nonsufficient funds (NSF) fees
We may assess a per-payment fee in applicable states for any payment that is dishonored by your bank for reasons that include, but are not limited to: nonsufficient funds, account closed, revoked authorization, stop payment, uncollected funds, or unauthorized payment. Return fees for loans originating in Washington are $15.00 per check ($25.00 for marine and recreational vehicles), in Arizona are $25.00 per check, and in Texas are $30.00 per check. Residents with loans originating in these and other states may refer to their loan documents for specific nonsufficient funds fee disclosures, if applicable, as amounts may vary based on state law, type of loan, or both.
We have a few payment options that have fees. Payments can be made from your checking or savings account to your loan account by calling 1-800-289-8004. A $6 fee for an automated telephone payment, and a $12 fee for an agent-assisted telephone payment, may be applicable based on the status of your account. You can also make payments through MoneyGram and Western Union offices nationwide. There is a third-party fee that will apply.
When will I receive my Certificate of Title?
Once you have paid the full amount that is due on your loan contract, you will receive a Paid in Full letter by mail.
If your title is maintained by Wells Fargo Dealer Services, it will be released in approximately seven to 10 days after the payoff posts to your account or as otherwise required by state law. This does not include mail time.
If the state maintains an electronic record of the title, instead of a paper copy of the certificate of title, we will electronically cancel our lien. Once the lien is released, the state may mail your title to you in approximately two to four weeks or the state may require you to request the title in person or online.
If you hold the Certificate of Title for your vehicle, we will send you a lien release or a Notice of Security Interest Filing.
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