Should I take the "skip a payment option" or make a payment like I intednded---car payment?

Question

My situation is that my car note is due this month on the 20th---now I was all set to pay it as usual--- that is until I recieved an offer from the finance company offering me to skip this months payment and that this amount (the payment that would be skipped) would be added on to my final payment once my car is paid in full (3 years from now)....my question is this a good option for me what are my consequences (besides the interest) if I skip this months payment??

FYI --- The notice said that if I skip this payment my terms are the same nothing changes-- except for the fact that my last car payment will be basically doubled--and the fee for doing this would be $25.00...Please advise

Answer 1

The amount of interest you pay will increase over the life of the loan. Why else would they make that offer if they couldn't make more money?

Make the payment.

Answer 2

A $25 fee?  Are you kidding?  What is $25 as a percent of the payment?  

They are not really letting you skip a payment.  They are loaning you the money to make the payment at a huge rate.

Answer 3

if you have the money then i think you should pay it, you never know what circumstances you will be in when the last bill comes around. If you didnt have then i would say go for it but why pay a fee and extra interest if you dont have to.

Answer 4

I'll steal your car and drive it off a cliff (with me obviously out of the car) then you can claim a stolen vehichle, loss on insurance, no more payments. Buy a car with the cash no payments again...

Answer 5

Absolutely not...do NOT skip it...if you have the means to pay it...then pay it. .....there may come a day when you're in a bind and then you can choose that option....they're always trying to get you to use up you 'skip payment' option quickly so they can tear you up with interest if you ever miss one in the future.

Answer 6

You should only do this if you dont' have the money to make the payment. For a couple reasons.

If you need to "skip" a payment in the future for a legitimate reason - like you lost your job and don't have the money - you may not be able to. Or you may only be able to do it once. Most banks only let you do this once or twice.

Why give them an extra $25 out of your pocket? Think in terms of this. If you earn $12.50 an hour that $25 is 2 hours of your work. For what? Skipping a payment you have the money for? If 10,000 people do this the bank will collect an additional $250,000 in FREE MONEY. If you've got $25 laying around donate it to charity, not the bank!

Good luck to you!

Answer 7

If you can afford to still pay the payment...do it!  What if you are in a serious financial bind when that last double payment comes due?  You may have a ding on your credit report because of your very last payment.  That would suck!!!!

Answer 8

Okay, If you're not in need of the money go ahead and pay the payment now, its better one payment at the time than two payments together. Remember that now you had the regular payment, but who knows at the end of the 3 years as you mentioned not to count the fees and the 25.00 for the transaction. On the other hand make sure they are not going to affect your credit with this transaction, I recommend you to verify with them before accept the agreement.  On the other hand if you need the money for other payment that means soon you will be skipping payments due the economic situation. Be wise on what you decide. Good luck...