Hey all. I'm looking to add extra money to payments on my TLX. I got my first payment in the mail and it does not have a spot for additional principal to be added. I financed mine thought Acura Financial Services and am curious if I add money to the overall payment, will if go directly towards paying down principal? Has anyone gone this? I had some weird issues with my wife's Toyota years ago where I put extra money into the payments and they just counted it toward the next payment so then the next payment would come and it showed I owed my standard payment minus what I overpaid the month prior. Super strange. I thought I would check on here before calling.

 

I often paid more than the minimum payment through AFS, any amount above my minimum payment would go to principal. It does not reduce your next monthly payment FYI.

 

Perfect! Thank you!

 

You can do that, but no ... it goes toward the Principal . Unless you mange to pay it off a year early or something ... you will only be saving the interest on the last few payments.

I would suggest you keep that extra money in the bank. If it turns-out you can pay-it-off-early then do that if you want.

Also, be sure that your finance-contract says you can pay-it-off early without penalties.

 

You can pay an Acura Financial loan early without penalty.

 

If you haven't already, set up your AFS account online. You can automate payments and there should be a section that allows for "additional principal". If you send a physical check every month and give extra, you are at the mercy of assumptions and good intentions.

 

Same for Audi Financial and the local Credit Union.

It was just something I heard about on a reputable YouTube channel, so now I always ask (and warn).

 

Thanks all. I put a good chunk down with rates being so stupid right now and only did a 3 year note. When times are good I'll be making double payments and if things get skinny, I still have my small payment to make. I'd like to pay if off within a year or two. I hate debt lol.