Joel, This is a confusing bit of law, but then FL lawmakers are not famed for getting it right.
Basically no. FL sets a maximum Add On interest rate dependent on the age of the car. For older cars this is 17% addon. This addon rate will result in an APR which varies by the term of the loan and the payment interval. Example: Addon =17% 12 months APR=30.03% 24 months APR=29.85% 36 months APR= 29.07% (sometimes these aprs will move one way and then the other!!!) Each of these APRs would result in an interest chg of $17.00 per $100.00 financed per year of the loan. Thus on a 12 month loan of 1000 @ 30.03% the finchg would be approx 170.00 and on a 24 month loan @29.85% the finchg would be approx 340.00 and so on.
The problem is that when the payment interval is weekly, biweekly, semimonthly a new APR must be determined that yeilds an 'equal yield'. This equal yield is NOT 170.00 or 340.00 but something a little less. I was originally doing it the way you describe below, but my customers were getting fined!
