Regular Contributor
Lyythine
Posts: 220
Registered: ‎03-05-2009
Re: Pay off majority of auto loan?..

That is incorrect...

 

If you get a loan for $8k and are FINANCING 8k, you will get a payment on that 8k that is not changed depending on how much you pay off.

 

So, for arguements sake,  lets say your payment would be $200/month initially on 8k.

 

1 month later, you pay off 5k of your loan, leaving 3k.

 

You will still pay the 200/month on the remaining balance, allowing you to pay it off early, but it will not  change monthly payment unless you refinance - but I find it hard to think that a financial institution would refinance for 2-3k..

 

Good Luck!