How can I pay down a car loan faster without making "double" monthly payments?

Question

I have 5 years of payments left on a car I hate. I cant afford to make more than one monthly payment on it but is there anything I can do to make it so it wont actually take me 5 years to pay it off? Meaning, is there any "rule" saying (for example) if I pay an extra $10.00 a month, that will shave a year off the length of the loan? Just using that as an example of course.

Answer 1

Not to be critical, some of the other answers seem off point.

For 95% of the auto loans made through a bank or larger finance company (not buy here pay here, etc) you can pay the minimum plus any additional amount you want.

As for prepayment penalties, that usually only applies to prepayment in full.

You just need to look for a payment calculator on the in the internet and plug in some numbers.

Example.

Original loan:

$15,000.00  loan amount

60  term

10.00% interest rate

($318.71)  payment

Original loan plus $50 per month the term is shortened by 10 months.

$15,000.00

50  term

10.00%

($368.06)

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Answer 2

Send an extra payment every month just whatever you can afford even if it is only $10 and write principal only on the check. This will help decrease the length of your car loan without actually making 2 full payments every month.

Answer 3

It looks like you feel really screwed up by this problem. Hope you may found helpful here.http://car-loan.free-deal.info/free-appr...

Answer 4

It should really save you a lot of running around to just get an auto loan price on the web to verify what the going rates are.  You might be pleasantly suprised.  Also if your credit is not the best, a lot of them are more willing to work with you.



What I most often tell folks is that an internet quote at http://auto.lowratetoday.com is what I would do.

Answer 5

You would have to calculate it out based on your interest rate and how much your payments are, but anything you can pay off over the minimum payment will reduce the time it takes to pay it off. I typically paid between 25 and 50 over (not every time but as often as I could) and I shaved almost a year off.

I've bookmarked this site to go back to next time I need a loan...

http://www.knowledged.info/go.php?link=a...

Good luck

Answer 6

that depends on the lender... some have penalties for early payoff... if there is no penalty then check the loan papers or contact the loan company - sometimes you have to send two checks... one for the monthly payment and the second for any additional amount...

Answer 7

Well of course you would have to do the math. Also if you have not been late after 6 months usually they can refinance the car which should help out a little with the APR which should lower the years not by much though. I say every time you have more money put that in the account and it will help out in the long run. Say for instance you get a check back from the IRS for your taxes...put that towards it. It all takes time. When you have good enough equity on a car SELL IT!!! Good luck

Answer 8

You can sell the car for the balance and buy something else you like or see if you can get it re-financed at a lower rate. The first year of a purchase that requires financing is  primarily interest and not principle ( the amount financed the buying price)