If I want to PAY off my TL faster
#5
Your Friendly Canadian
Join Date: Dec 2007
Location: Toronto, Ontario
Age: 32
Posts: 17,433
Received 1,492 Likes
on
1,050 Posts
That's kinda impossible-ish...
Trending Topics
#8
B A N N E D
iTrader: (4)
OP you can't really reduce your monthly; but yes to reduce the length of the loan pay more then the minimum monthly amount (which should also reduce the amount of interest you pay in the long term)
also i know on home mortages, you have to write a seperate check to pay extra, and you have to write under the memo part iirc, "principal" (somebody may need to correct me on that though)
but here is another question though, is if you can't afford the monthly payments, then why did you get the car in the first place?
#9
Trolling Canuckistan
The only way to lower your payment would be to refinance the car. If you want to pay it off faster you need to send in more than your monthly payment. Some states require auto loans to be simple interest no pre payment penalty, if this is the case where you live any extra money sent in goes against the principal.
Sending extra money in will only lower the amount you owe, it will not lower your monthly payment.
Sending extra money in will only lower the amount you owe, it will not lower your monthly payment.
#10
BANNED
iTrader: (33)
^yup...refinance in the hopes that you'll get a lower rate.
i'm taking that route in the next month. when i bought mine back in june, i went with dealership financing and i think i can get a better % if i look around.
girlfriend works at a bank and they're offering between 3-4%...i'm gonna try her first and go from there.
i'm taking that route in the next month. when i bought mine back in june, i went with dealership financing and i think i can get a better % if i look around.
girlfriend works at a bank and they're offering between 3-4%...i'm gonna try her first and go from there.
#11
Trolling Canuckistan
Just remember saving money on the rate isn't worth it it you are extending the term out again. For Example if you are 16 months into a 60 month loan and you refinance to save a point on the rate but start another 60 month loan, you could end up paying more in interest because you are taking 76 months to pay it off.
If you do refinance, you should make sure your term doesn't go any longer than it was originally going to go. If you are 1 year into a 5 year loan and refinance, you should only refinance for 48 months.
If you do refinance, you should make sure your term doesn't go any longer than it was originally going to go. If you are 1 year into a 5 year loan and refinance, you should only refinance for 48 months.
#12
Mademoiselle Chanel!!
Just remember saving money on the rate isn't worth it it you are extending the term out again. For Example if you are 16 months into a 60 month loan and you refinance to save a point on the rate but start another 60 month loan, you could end up paying more in interest because you are taking 76 months to pay it off.
If you do refinance, you should make sure your term doesn't go any longer than it was originally going to go. If you are 1 year into a 5 year loan and refinance, you should only refinance for 48 months.
If you do refinance, you should make sure your term doesn't go any longer than it was originally going to go. If you are 1 year into a 5 year loan and refinance, you should only refinance for 48 months.
#15
Burning Brakes
I think the OP is a troll. The question is pretty ridiculous. He or she is asking a way to lower the monthly payments as well as pay off the loan faster? Not to mention they never bothered replying back to any of the comments.
#16
Instructor
Just payoff the loan entirely, that reduces the monthly payment to $0 and pays off the loan faster, satisfying both conditions. Make sure you check the terms of the loan that you can pay it off faster than the original terms. I heard some banks are jerks and may forbid early payoff or charge fees and make you liable for the interest on the original terms.
#17
Drifting
^^ That's what I did. Had a 4.5% rate, and got some cash and decided just to pay it off. $0 a month payments are best. Now I pay myself the same amount for in case of issues, or when I look to upgrade.
#18
Trolling Canuckistan
^^^
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
#19
Suzuka Master
^^^
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
The dealers would tell me how much better for be it was to buy on credit, my credit score, etc.. BAH... they didn't refuse my $$ though!
#20
#21
Drifting
^^^
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
#22
Trolling Canuckistan
I was just throwing it out there as it is a common misconception that paying off your loan early builds your credit faster.
#23
Drifting
To to OP - if you want to pay it off quicker, then you can try to make an extra payment on the principal every couple of months, or if you have the money, pay double payments every month.
#26
Burning Brakes
^^^
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
#27
if you lease a tl is there a interest also? im confused i leased mine but im most likely going to keep it after 3 yrs but how come my payoff keeps growing n growing every month???
help please
help please
#29
Instructor
Don't worry about the payoff amount they show you each month on your statement. It's irrelevant unless you terminate the lease contract early.
If you intend to purchase the vehicle at the end of the lease, you'll pay an amount equal to residual value in your lease contract. If at the end of the lease the car is worth less than the residual value, you may be able to negotiate a lower purchase price. If it's worth more, you'll still be able to purchase for the residual value.
#30
Instructor
There is really no way to make extra payments on a lease. You can't build equity in a leased vehicle. The payment, lease charge, and residual value are fixed at the time you sign the lease contract and you are expected to honor the terms of the lease contract.
#31
so why does the payoff keep going up every month even tho im paying on time and stuff?is that the interest on a lease?............so best bet is to just pay the regualr montly payment and not more?
#32
8th Gear
Join Date: Mar 2011
Location: Queens, New York
Age: 53
Posts: 8
Likes: 0
Received 0 Likes
on
0 Posts
this is what i did in the pass.....
#33
Instructor
When I picked up my 09 in September of '08, I financed for 60 months at the then tier 1 rate of 6.0%...after my trade in and cash down payment my monthly bills were roughly $350 a month, but I payed it down super fast by paying $700+ per month to knock the loan down.
After I graduated (8? months later) I tossed another lump sum down on it, and refinanced with my bank (Chase), got my payments down to $190 for 36 with 4%...payed it off after a year (to avoid pre-payment penalty from bank)
That's true to a point, but if you have a high debt to income ratio, it could help the credit, with the car being an 'asset' that you own, and not contributing to your debt
After I graduated (8? months later) I tossed another lump sum down on it, and refinanced with my bank (Chase), got my payments down to $190 for 36 with 4%...payed it off after a year (to avoid pre-payment penalty from bank)
Paying it off too soon pisses off the bank and doesn't help your credit much. Not a huge issue for some but any one trying to establish or rebuild credit should pay off the loan on time but over time.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
The banks don't want to know that you'll pay them back, they want to know you'll let them earn interest off you.
Last edited by PaulNY; 03-15-2011 at 02:14 AM.
#34
Instructor
#35
Trolling Canuckistan
I mentioned it because, as I said earlier, it's a common misconception that you build credit faster by paying off the loan early and that's not the case. It's a good thing for recent college grads or younger people working on establishing credit to know. Sometimes they bust their asses to make extra money so they can pay off the loan early thinking it will help build credit.
However if you do have a very high debt to income ratio, the chances of you having extra money to put into the car payment is relatively low.
#36
but my questions go towards a lease not finance........i just started my lease 4months ago and payoff now is 27k..........should i pay the lease of 230 every month or pay more?esp if i plan on keepin the car after the lease is over
#37
You are renting the car, that is what a lease is. Rental with a balloon payment at the end to buy it out. The terms are all in the lease just like renting an apartment, providing more money monthly on a lease changes nothing. The only thing it would do is change how much your next months payment is. There is no principal or equity for them to apply the extra money to.
#38
Trolling Canuckistan
You can't pay off a lease early and avoid finance charges. It's different than a finance contract.
#39
APR?? Term??
If you financed new through Acura, chances are you have a great deal right now. Ours was technically a CPO even though it was never titled because it had 1600 miles so the APR is 2.9. If your APR is less than that you will not find a better deal. If it is higher you could find a better rate at your local credit union or even your insurance company IE; State Farm. Refinancing to a shorter term is/may be necessary, in which case the payment would go up but you will pay less in the long run.
Last edited by Mr Marco; 03-15-2011 at 06:16 PM.
#40
Thanks for valuable posts guys. Sorry for not responding sooner. Work got me neck deep and a home buy pursuit also kept me busy.
Basic details are :
Owe about $40K
0.09% for the 60 month term
$0 Downpayment
Monthly payment is about $670
Official answer from Acura Financials was that I can pay it off faster by adding more the the principle but that wudnt lower my monthly payment..it would reduce my principle and the interest overall.
Basic details are :
Owe about $40K
0.09% for the 60 month term
$0 Downpayment
Monthly payment is about $670
Official answer from Acura Financials was that I can pay it off faster by adding more the the principle but that wudnt lower my monthly payment..it would reduce my principle and the interest overall.