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"Rounding up your car loan payment is an easy and effortless way to knock a few months off your car loan term. You don’t need a lot of extra money, but the more you add to your payments, the sooner you can walk away from your loan.
To illustrate, let’s say you purchase a car for $20,000 and pay 4.25% interest for 60 months. The monthly scheduled payment based on these numbers is $371. Rounding up your payment to $400 shortens your car loan by six months. Go a step further and increase your payments by $100 a month and you can reduce your auto loan term by 13 months"
This. You had a new contract. The original contract is then voided. Payments on a contract do not change. When the contract is voided by a new contract, then there can be a different payment. So far you have been told this by an attorney, a sales rep, and a fleet manager that has literally bought and sold thousands of vehicles. Your +10 cars of experience is not expert level.
I guess you missed the part where I said contract wasn't rewritten yet the payments dropped due to changes in terms. Contracts aren't written in stone, especially auto contracts.
Never said I was an "expert"..... I'm just sharing my experiences where terms were later changed and the payments were subsequently lowered, never the months.
When I pay extra towards my Acura Financial account, the remaining payment amount is lowered. The term is not reduced. When I pay an extra mortgage payment, the term is reduced but the payment is not lowered.
"Rounding up your car loan payment is an easy and effortless way to knock a few months off your car loan term. You don’t need a lot of extra money, but the more you add to your payments, the sooner you can walk away from your loan.
To illustrate, let’s say you purchase a car for $20,000 and pay 4.25% interest for 60 months. The monthly scheduled payment based on these numbers is $371. Rounding up your payment to $400 shortens your car loan by six months. Go a step further and increase your payments by $100 a month and you can reduce your auto loan term by 13 months"
Making a large payment toward the principal is the best option to lower your auto loan payment. By reducing your principal balance your monthly payment will shrink
When I pay extra towards my Acura Financial account, the remaining payment amount is lowered. The term is not reduced. When I pay an extra mortgage payment, the term is reduced but the payment is not lowered.
Thank you, this is exactly what I've been trying to say.
Well I am paying 0% interest on my loan so the principal is a mute point for this conversation
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