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Without the pertinent figure, how much you owe, I would say no. Most loan contracts say that no matter how much you pay one month, the next month you are due for your regular payment
No matter how much you pay in one payment, it will not reduce the next payments. It will only put you that much further ahead in payments. IE, if your payments are $500 per....you will then set yourself 2 car payments ahead of schedule. But not reduce the others.
If you pay extra, make sure you mark it specifically for the principle. Otherwise they may very well take it as projected interest and you're ahead exactly nothing.
Need more info about the car loan that you have. What's the outstanding balance and what's the interest rate? Also, is the loan contract for simple interest? If the loan is simple interest, then it should have this phrase somewhere in the contract that you signed.
Right now I have 57 car payments left and I was wondering, if I pay $1,000, will it reduce to 47 car payments left?
Lots of missing information here, DVDFreaker.
If your obligation is $100 per month, depending on the contract, you may be able to specify you want your $1000 to cover the next ten payments. However, due to the interest involved, a much more practical approach would be to apply the $1000 to the principle thereby reducing the length of the term. So, with the limited information available, you could very well be reducing the number of payments by more than ten.
Wait a minute, are you saying that if I pay $7000 tomorrow (That is how much I owe), my car still won't be paid off and I have to pay my next payment and I waste $7,000 for nothing?
If your obligation is $100 per month, depending on the contract, you may be able to specify you want your $1000 to cover the next ten payments. However, due to the interest involved, a much more practical approach would be to apply the $1000 to the principle thereby reducing the length of the term. So, with the limited information available, you could very well be reducing the number of payments by more than ten.
Need more info about the car loan that you have. What's the outstanding balance and what's the interest rate? Also, is the loan contract for simple interest? If the loan is simple interest, then it should have this phrase somewhere in the contract that you signed.
$7,000 and my intrest rate is 18.9 and yeah, the sooner I pay off, the less interest I owe
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