with most places, the way it works is whatever interest is due is collected first, whatever's left including any amount greater than the minimum due goes to principle, unless there are other fees or charges owed of course. as far as i'm concerned (and i work for a company that also does auto financing), you can request a principal reduction only pmt.
make one payment with the entirety going to principle for that month. your next pmt will all go to interest accrued for 2 months and nothign to principal. just keep that in mind. at least that's how it works for my company. creditors will always get their cut as long as you keep the debt open (hint). if you keep the debt open for 3 years out of a 5 year term, you'll pay 3 years of interest no matter how many principle only payments you made in that time. but you'll also be saving 2 years worth of interest by paying off early. best way to do it if you want my opinion, is just make monthly payments like normal but pay above the minimum rather than just having one normal payment as principal reduction only. obviously the most ideal way of saving money is to pay cash or payoff asap.
ask the financing company if they offer biweekly payments at no extra charge. you can split the regular payment in half, pay that amount every other week. the principal will shrink faster that way and you'll end up saving money on interest alone and paying the note off faster. soem companies either charge for that service or dont' offer that at all. you should check. anyone with mortgages should check on this too.
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