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How can i pay off my car loan without the interest??


 How can i pay off my car loan without the interest??
topic by Calamity - 12-07-2010, 10:04 AM - Boxden > The Money Spot (finance/careers)


i need help... so i went through the process of buying this car, down payment,got financed,agreed to loan terms,ect and now ive been paying my car note every month for a while... and im wondering if i can just pay the original price of the car out. because the car was originally ______ dollars but with my APR it came out to be _____________ dollars lol am i stuck with paying that whole loan price? or can i somehow pay that original price out and be done with it?


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21 comments for "How can i pay off my car loan without the interest??"


 12-07-2010, 10:13 AMaway - #2
Keno024 6 heat pts

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You have pay interest for something you got financed dumb a$s.
 12-07-2010, 10:22 AMonline - #3
MadGam325 14 heat pts14

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^^This guy above me doesn't know what he's talking about. Don't listen to him.

The interest is accrued month after month. So the sooner you pay the car off, the less interest you have to pay. If you pay the total amount off no, you won't have to worry about the interest for the remaining months.
 12-07-2010, 10:37 AMaway - #4
ngoogs 4 heat pts

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Originally Posted by Keno024
You have pay interest for something you got financed dumb a$s.
at your complete lack of knowledge, dumb a$s.
 12-07-2010, 10:47 AMaway - #5
dmunson318 

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and then he called the guy a dumb a$s is whats so bad!
 12-07-2010, 10:54 AMaway - #6
ClevelandRay 

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Well he is not totally wrong, you might have to check your loan agreement. Some banks have an early term fee but it's usually no where as high as the intrest. The best thing to do is to go to the bank and ask about an early payoff amount. Also if you have been on time you can ask the bank for better rate for your loan. I know it does not get rid of the intrest but it can help bring the rate down
 12-07-2010, 11:38 AMonline - #7
MadGam325 14 heat pts14

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Originally Posted by ClevelandRay
Well he is not totally wrong, you might have to check your loan agreement. Some banks have an early term fee but it's usually no where as high as the intrest. The best thing to do is to go to the bank and ask about an early payoff amount. Also if you have been on time you can ask the bank for better rate for your loan. I know it does not get rid of the intrest but it can help bring the rate down
Exactly.

A pre payment penalty does not equate to the accumulation of interest over the life of the loan. Not even close. Dude was nowhere near right.
 12-07-2010, 03:04 PMaway - #8
Calamity 3 heat pts

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i guess i am kind of dumb... at least to this subject so thanks to all... except keno024...
 12-07-2010, 03:16 PMaway - #9
cmryals 

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When I buy a car I finance it as long as possible for the lowest interest possible with no intent on even taking that amt of time to pay it off. For intense, I just bought a truck for $18k I financed that for 75mo @ 3.4% with no early pay off penalty fee. Now I know I can afford to pay $800mo. So monthly I pay the $240 and send the other $560 to principle. So in the end they will barely make anything off my loan and even if you trade it off before paying it off you can come out on top instead of being upside down like a lot of people who pay the exact amt month to month while the car depreciates faster than they can pay it down.
 12-08-2010, 04:27 AMaway - #10
prawfitt 

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it all depends on your loan agreement...i know for my car i have to make X amount of payments...so im stuck paying the interest...just read your contract..it should be outlined there...
 12-08-2010, 06:41 AMaway - #11
Calamity 3 heat pts

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Originally Posted by cmryals
When I buy a car I finance it as long as possible for the lowest interest possible with no intent on even taking that amt of time to pay it off. For intense, I just bought a truck for $18k I financed that for 75mo @ 3.4% with no early pay off penalty fee. Now I know I can afford to pay $800mo. So monthly I pay the $240 and send the other $560 to principle. So in the end they will barely make anything off my loan and even if you trade it off before paying it off you can come out on top instead of being upside down like a lot of people who pay the exact amt month to month while the car depreciates faster than they can pay it down.
^^^thats hot^^^ lol
 12-08-2010, 07:53 AMaway - #12
Bamf55 

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Originally Posted by cmryals
When I buy a car I finance it as long as possible for the lowest interest possible with no intent on even taking that amt of time to pay it off. For intense, I just bought a truck for $18k I financed that for 75mo @ 3.4% with no early pay off penalty fee. Now I know I can afford to pay $800mo. So monthly I pay the $240 and send the other $560 to principle. So in the end they will barely make anything off my loan and even if you trade it off before paying it off you can come out on top instead of being upside down like a lot of people who pay the exact amt month to month while the car depreciates faster than they can pay it down.




how did u get a 75 month loan? did u go through a credit union or a "regular" bank or what? or is it cause u have amazing credit..? im still learning a lot about this stuff...
 12-08-2010, 03:00 PMonline - #13
J AL7 

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Originally Posted by cmryals
When I buy a car I finance it as long as possible for the lowest interest possible with no intent on even taking that amt of time to pay it off. For intense, I just bought a truck for $18k I financed that for 75mo @ 3.4% with no early pay off penalty fee. Now I know I can afford to pay $800mo. So monthly I pay the $240 and send the other $560 to principle. So in the end they will barely make anything off my loan and even if you trade it off before paying it off you can come out on top instead of being upside down like a lot of people who pay the exact amt month to month while the car depreciates faster than they can pay it down.

This is a good idea but most people dont know that you can send in your payment via mail and notate on the check/money order/cashiers check to "apply to principle" the interest is accrued on the principle balance, the lower the principle the lower the interest.
 12-08-2010, 05:57 PMaway - #14
cmryals 

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Originally Posted by Bamf55
how did u get a 75 month loan? did u go through a credit union or a "regular" bank or what? or is it cause u have amazing credit..? im still learning a lot about this stuff...
Believe it or not the Dealership found a credit union offering that and my credit is pretty damn good as well.

Last edited by cmryals; 12-08-2010 at 06:00 PM..
 12-08-2010, 06:00 PMaway - #15
cmryals 

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Originally Posted by J AL7
This is a good idea but most people dont know that you can send in your payment via mail and notate on the check/money order/cashiers check to "apply to principle" the interest is accrued on the principle balance, the lower the principle the lower the interest.
Yeah i had to explain it to my wife. She was making large payment on her car and all the bank did was push her payments out so she wouldnt have a payment due for like 3 months. I refinanced her car to a bank where at the click of a check box she could submit a Principle Payment at any time for any amt online and had here base payment draft on auto every two weeks. made it alot easier to pay down.

Rule of thumb: Lower the principle as fast as possible.

My rules for buying a car is: Decent Down Payment + Finanace as Long As Possible + Lowest Interest Rate % Possible + Paying as much as possible to Priciple = Loan paid off in shorter amt of time with little intrest charges

Last edited by cmryals; 12-08-2010 at 06:12 PM..
 12-08-2010, 09:43 PMaway - #16
Ednyce 

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wow your stupid !
 12-08-2010, 11:34 PMaway - #17
egotistical 1 heat pts

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Originally Posted by cmryals
Yeah i had to explain it to my wife. She was making large payment on her car and all the bank did was push her payments out so she wouldnt have a payment due for like 3 months. I refinanced her car to a bank where at the click of a check box she could submit a Principle Payment at any time for any amt online and had here base payment draft on auto every two weeks. made it alot easier to pay down.

Rule of thumb: Lower the principle as fast as possible.

My rules for buying a car is: Decent Down Payment + Finanace as Long As Possible + Lowest Interest Rate % Possible + Paying as much as possible to Priciple = Loan paid off in shorter amt of time with little intrest charges
How about you just save your money, stack it up, and buy the car straight out for a much lower price... or buy a used cash car, great shape, and have no car payment every month...
 12-09-2010, 03:20 AMaway - #18
Calamity 3 heat pts

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Originally Posted by egotistical
How about you just save your money, stack it up, and buy the car straight out for a much lower price... or buy a used cash car, great shape, and have no car payment every month...
wheres a cmon son gif when you need one?.....
 12-09-2010, 08:09 AMonline - #19
J AL7 

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Originally Posted by egotistical
How about you just save your money, stack it up, and buy the car straight out for a much lower price... or buy a used cash car, great shape, and have no car payment every month...

The reason you don't want to do it that was is because TransUnion/Experian/Equifax cant certify you as a credible buyer with financial obligations to track your payment history and build your credit score. The way that the other guy does it still requires a length of time to pay but he pays less interest and at the same time builds his credit score up.
 12-09-2010, 10:21 AMaway - #20
Calamity 3 heat pts

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Originally Posted by J AL7
The reason you don't want to do it that was is because TransUnion/Experian/Equifax cant certify you as a credible buyer with financial obligations to track your payment history and build your credit score. The way that the other guy does it still requires a length of time to pay but he pays less interest and at the same time builds his credit score up.
yes! yes! yes! im in the process of building my credit up sir
 
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