akash4u

iTrader: (3)

If I want to reduce my monthly payment and also pay the amount off faster what do I do? Any knowledge around this topic on the forum?

Have a 2010 TL Black on Black Sh-AWD...picked it up in Nov-2010

Thanks

justnspace

iTrader: (1)

you did not include basic details of your loan.....

eazy

iTrader: (8)

pay more than the minimum of every month? lol what other way did ya expect to reduce your monthly payment?

AMUA6

iTrader: (7)

lol reduce monthly payment, but pay the car off faster... Now that's one contradiction eating another!

Aman

That's kinda impossible-ish...

Stew4HD

^ exactly...

Go in to the bank with a few thou and then refinance the remaining balance at a lower APR.. that's about the only way I know

AMUA6

iTrader: (7)

Finance for 36 months OP.

friesm2000

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?

black label

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.

SharksBreath

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.

black label

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.

compewterbleu

Marvelous information Black Label.

1islandparadise

I just refinanced mine from 3.9% to 2.9%.

CapoTL

im glad i got my 4g for 0.9%, barely any interest at all on the entire loan! Thats also because I had a good trade.

JAB00

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.

Eli

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.

Pete2010

^^ 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.

black label

^^^
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.

Stew4HD

There was a time, not so long ago that dealerships didn't want people to pay cash for a car. They got kickbacks from creditors, especially the secondary creditors that charged 15-25% APR.

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!

NwTSXmt

Your trade in lowered youur interest rate?

Pete2010

Yea - luckily not an issue for me. And my loan ended up being with Bank of America (which I hate with a passion). So I was happy not to give them any more money than absolutely necessary.

black label

I was just throwing it out there as it is a common misconception that paying off your loan early builds your credit faster.

Pete2010

Very true. No doubt there. If you're younger and looking to build credit, just pay off the loan normally. I had a credit card from when I was 18 that i never missed a payment on, have kept it open since it helps my credit so much. But now that i'm 30, and had many years to build an epic credit score, my only goal now is to reduce all my credit down to just my home (till I pay that off). I'm there now, with my only loan now being my home.

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.

potmilkz

just find a suga-momma to pay it off for you..

handsomebelly

or sell stock options and just pay off the loan - like I did

JAB00

It's not going to harm your credit though. Plus anyone who is able to pay off a car note with a large lump sum likely does not have any problems with credit or needs to build up their credit. I think it's a moot point.

cl0ud8888

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

cl0ud8888

i just leased it 4 months ago...what do you guys think i should do? pay more or what?
now my payment is 230 a month on a 10 tl w 100 miles

n-spring

Yes, there was interest involved, but it's called a money factor.

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.

n-spring

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.

cl0ud8888

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?

desteoh

Pay more than the minimum of every month.. save on the interest.. and reduce the payment term... by 2 to 3 month
this is what i did in the pass.....

PaulNY

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

n-spring

That's all you can do with a lease.

black label

There are always variables that can come into play but as a general rule, you will make the most improvement on your credit score by paying the exact monthly payment on time for the full term.

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.

cl0ud8888

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

blkhwkz

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.

black label

You can't pay off a lease early and avoid finance charges. It's different than a finance contract.

Mr Marco

Wow, 40 posts and we have yet to hear from the OP
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.

akash4u

iTrader: (3)

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.