Carl is correct, if your car payment is 300.00 halfway through your term and you have 150.00 of that payment going towards principal and 150.00 going to interest. You can not satisfy a monthly payment by paying only principal (150.00). You have to satisfy the monthly payment of 300.00 and anything OVER can be applied directly to principal even if it’s only 1.00. If you pay 400.00 monthly, 300 will satisfy interest and principal, that extra 100 usually goes in a “billing bucket” going to the next monthly payment unless you ask for them to apply it to principal. Some banks will apply to the princ automatically, depends on the bank.
I work for a very large bank (top 10) in the US. Started in collections, worked autos specifically in repo, and now I’m elsewhere with 10 years expierence in the industry.
