How much sooner will I pay off my car?

Question

I bought a car on 2/22/07 with a loan for $26,853.18 for 72 months at a rate of 5.5% (Thank God for Credit Unions). My regular payments are about $440/month. I have, and will continue to make payments of $500/month. How much sooner will it be paid off than the proposed 2/22/13?

Answer 1

You may have received a schedule showing amount owing, interest, amount remaining for each month.  If not your credit union should be able to provide a schedule print out.  I could do this but it would take quite a bit of time and a longer space than an answer post.

paying on schedule the car will cost you 31,860

The first month 294 went toward the loan and 150 for interest

these amouts will change every month

with the added 60 dollars 354 went for the loan and 150 for interest.  You will still have many more months to pay.

try to increase the amount prepaid...if you can not pay the same amount each month then pay as much as you can when ever you can.  reducing a 5.5% loan is a good investment since you are unlikely to earn that much in any type of savings program.  A much more cost effective action would have been to buy a less expensive car with fewer payments.

Answer 2

18 months!!!

Answer 3

According to my financial calculator, if you began the excess payments at the beginning, it should take you 62 months to pay so you're knocking off 10 months.