All SAFCO customers have simple interest financing. They’re common in auto credit and are also referred to as financing.

• Simple interest contracts are paid back in equal, monthly installments that are determined when you receive the financing. That’s why you’ll see the use of the term Retail Installment Sales Contract on your paperwork.
• Each monthly installment (a.k.a. payment) that you make goes FIRST toward any late fees you may owe, then toward the interest (the price of borrowing money) that has accrued since your last payment, and finally, what’s left of your monthly payment goes toward the amount you borrowed (the principal).
• Although you’ll be paying equal amounts each installment, how that money is applied to late fees and your interest and principal will change if you’re late or early in paying.
• Pay earlier than the due date and more of your payment will go toward your principal. Pay late and more of your payment will go toward fees and paying down the interest you owe, which means it will take longer to pay off your principal and vehicle.