topic Re: auto loans in Auto Loans

auto loans

Anonymous — Thu, 23 Apr 2009 14:26:44 GMT

I would like to know, if I want to pay my car off early. Do I put money towards my monthly payment, or pay my monthly payment. And send a separate payment later that month stating " pay towards principals".

Re: auto loans

Anonymous — Thu, 23 Apr 2009 14:36:51 GMT

good question - wish i could give u a good answer. When i got my auto loan, i had the option of adding a small amount of extra to the principal in the regular payments. I was told it would shorten the time of the loan and improve my rate a little. However, I did forget to ask about extra payments (in the event I could afford it) and how to go about doing that. Maybe someone else who's been there longer can help us both out!

Re: auto loans

Anonymous — Thu, 23 Apr 2009 14:42:05 GMT

Honestly that depends on the type of loan you are in and it's particular terms.

Most car loans are simple interest loans so any amount you pay "over" immediately gets credited to the Principal balance and your interest accrual adjusts accordingly.

You may have a lender with pre payment penalties and the like, you need to call them.

Re: auto loans

Anonymous — Thu, 23 Apr 2009 14:48:01 GMT

thank you for responding so quickly to my question.