Question

Can I only pay my principle on my car note and not be penalized?

Forum|Forum|7 years ago
October 5, 2018
25 replies
0 views

I pay a little over $300 a month and in 10 months I've only contributed $500 towards the loan amount...>:-[

Car Loans

I recently had a Loan and what I would do is make two payments. The first was the minimum payment due, then the second payment would be whatever extra I wanted to pay on the principal. I paid off my loan six months early and saved on interest. It really depends on what type of loan you get so I always recommend when buying a car to ask the lender if you can do so without penalty. I have heard some lenders will not let you pay on the principal unless you are doing a payoff.

K

KA12

No to your intital answer.

However, I have had the same problem, except my payments were $495.33 with a 1.9% APR, 72 month loan. Tell me why I have paid over $6000.00 on a car, making more than the monthly payment and have only paid $2000.00 on my whole loan. I have a lawyer on this case, but im pretty sure the finance company isn't following the armortized schedule and more. I cant figure out where they have applied the money towards.

J

Jamarra

Refinance and lower your interest rate.

R

rodven

Another helpful trick, interest is accrued daily, so paying your note 2-3 weeks in advance will reduce the overall interest your paying on the bill monthly and the daily accrued amount will only start after that bill cycle is past (i.e. Car Note due on Feb 28th , make the payment on Feb 14th, you save on 14 days of interest and the interest doesn't start adding back up until Feb. 29th (since its a leap year)) 😉

J

JoeyC9000

Kinda but no. With my first vehicle my payment was 270 and I was making 300 payments. After a few statements I saw that half was going to interest. So I called and asked if I could pay only the principle. No, itd have to be at least 80/20, which is reasonable. Needless to say, I paid it off early.

Now my second vehicle I got with a different place and theirs is 'unalterable'. So I'm making 500 payments on a simple interest loan. Meaning if I pay it on time then 40% goes to the principle but if it's late then the interest part receives more. As high as 80% to the interest. My last statement was 345 to interest and only 155 to the truck. 🤢