BBQdDude Posted August 1, 2019 Report Share Posted August 1, 2019 So I will be coming out of a three year no "fun car" hiatus this coming spring. Only thing that has saved my sanity is my Harley. I have researched a few cars and I am thinking next car will be around $25-$30k. Now in the past I have sourced auto loans, made my payments without much thought. So, onto the question... Once a car and loan are sourced I will have a 4 year repayment plan. I will want to make heavy principle payments above the monthly loan repayment to lower the amount owed on the car. Will the total amount of interest still have to be paid if say I pay it off 1-2 years early or will the total amount of interest go down from over payment on the monthly amount? Quote Link to comment Share on other sites More sharing options...
mustangman2011 Posted August 1, 2019 Report Share Posted August 1, 2019 l the total amount of interest go down from over payment on the monthly amount? Your answer would be this Quote Link to comment Share on other sites More sharing options...
iwashmycar Posted August 1, 2019 Report Share Posted August 1, 2019 Yes. Not a whole ton of interest to be paid on a car note anyway if you get a good rate. That said, if you have other debts make sure you shouldnt be putting that extra to them instead. Just like making by-weekly payments on a house. The extra payment per year cuts the amount of principal and thus interest substantially over the life of the loan. Quote Link to comment Share on other sites More sharing options...
BBQdDude Posted August 1, 2019 Author Report Share Posted August 1, 2019 That said, if you have other debts make sure you shouldnt be putting that extra to them instead. Just like making by-weekly payments on a house. The extra payment per year cuts the amount of principal and thus interest substantially over the life of the loan. Credit cards are ALMOST paid off, spring next year I will have 0 balance. House loan, I sold my house three years ago and I have been renting since. House purchase is planned for early next year. Your advise is exactly what I did on the last house loan. I also plan on making a few $K in overpayments on top of that. I appreciate the responses. I think that wraps up my question. Quote Link to comment Share on other sites More sharing options...
Geeto67 Posted August 1, 2019 Report Share Posted August 1, 2019 What happened to the 370Z? Shop your auto loan. Most have no pre-payment penalty, but every once in a while it does come up. Look at mfg loans too since they often have the lowest interest if you qualify (sometimes 0%). Qualify for a loan before you go in the dealer, even if you plan on using the mfg financing, this gives you an option if the dealer can't get their financing to work. the difference in interest rate between 48 months and 60 months is rarely ever more than .06% and it sometimes pays to have the extra breathing room if you need a month to make a minimum payment, if you are paying it off early anyway then you probably won't pay any more anyway from the extra .06% in interest Quote Link to comment Share on other sites More sharing options...
Furloaf Posted August 1, 2019 Report Share Posted August 1, 2019 You might have to ask to make principal payments and not advance payments. Depending on bank/loan some might not allow it, or still charge full interest term. Quote Link to comment Share on other sites More sharing options...
BBQdDude Posted August 2, 2019 Author Report Share Posted August 2, 2019 What happened to the 370Z? With a heavy heart I had to sell it. Grown daughter and her family were having sever money issues. Only way I could help was by shedding a $500 car payment and a $150 insurance payment. Took 2 years but they are out of the woods. Then I spent a year paying down all of my debt. Then I had alimony going on for a few years. All that ends early first quarter this next year. I REALLY hate being responsible lol. On the loan I never walk onto a car lot without a pre approval saying I can borrow X amount as long as the car rates at that amount. This way if the dealer can't match it I win. If the dealer can beat it I win. Quote Link to comment Share on other sites More sharing options...
BBQdDude Posted August 2, 2019 Author Report Share Posted August 2, 2019 You might have to ask to make principal payments and not advance payments. Depending on bank/loan some might not allow it, or still charge full interest term. Noted, thank you. Quote Link to comment Share on other sites More sharing options...
POS VETT Posted August 2, 2019 Report Share Posted August 2, 2019 I keep these two rules when it comes to financing a car: 1. Simple interest 2. No pre payment penalty With my credit score, I use whatever financing available at the dealership to score the best deal and before the first payment, I refinance it with my credit union to get refinancing rebate and the lowest interest rate. Quote Link to comment Share on other sites More sharing options...
l36tols1 Posted August 2, 2019 Report Share Posted August 2, 2019 I keep these two rules when it comes to financing a car: 1. Simple interest 2. No pre payment penalty With my credit score, I use whatever financing available at the dealership to score the best deal and before the first payment, I refinance it with my credit union to get refinancing rebate and the lowest interest rate. How long do you usually wait to refinance? Quote Link to comment Share on other sites More sharing options...
POS VETT Posted August 2, 2019 Report Share Posted August 2, 2019 How long do you usually wait to refinance? Until the payment slips have arrived. Quote Link to comment Share on other sites More sharing options...
Suprafiedd Posted August 4, 2019 Report Share Posted August 4, 2019 Credit unions.... Check out Penfed. for the best rates. Quote Link to comment Share on other sites More sharing options...
Mace1647545504 Posted August 5, 2019 Report Share Posted August 5, 2019 Kemba has a good low rate Quote Link to comment Share on other sites More sharing options...
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