topic Re: Can I only pay my principle on my car note and not be penalized? in Other financial discussions

Can I only pay my principle on my car note and not be penalized?

fcyoungblood — Thu, 18 Oct 2018 16:36:07 GMT

I pay a little over $300 a month and in 10 months I've only contributed $500 towards the loan amount...>:-[

Re: Can I only pay my principle on my car note and not be penalized?

Carl — Fri, 05 Oct 2018 18:29:52 GMT

You'll have to talk with the lender about that, as it depends on the terms of your loan. I seriously doubt however, the lender will do that. But if your payments are only $300 a month, if you pay more than that each month the additional amount will reduce the principle by that additional amount, resulting in less of each payment going towards the interest, more going towards the principle, and you'll pay off the loan that much faster and sooner.

Re: Can I only pay my principle on my car note and not be penalized?

HurricaneWray — Mon, 08 Oct 2018 15:39:06 GMT

In my personal experience, you are required to make the minimum monthly payment that contributes to the interest and principal balance. When making payments, there have been options to make additional payments towards the principal only. That will reduce your overall balance and reduce the overall interest you pay over time.

Re: Can I only pay my principle on my car note and not be penalized?

308nw2ndst — Thu, 18 Oct 2018 15:33:30 GMT

Can i

Re: Can I only pay my principle on my car note and not be penalized?

Stevep0070 — Thu, 22 Nov 2018 16:23:17 GMT

Short answer is no. Loans are amortized in a way that at the beginning of the loan you are paying mostly interest and at the end you are paying mostly principle. That is why you haven’t paid much down on the principle. Say your loan is a 6 year loan. At 3 years in, half of you payment will go to principle and the other half toward interest. The first year years more interest than principle and the second 3 years more principle than interest. Think of the letter X on a graph where the top left line is interest and the bottom left line is principle.

Re: Can I only pay my principle on my car note and not be penalized?

Carl — Fri, 01 Feb 2019 00:15:50 GMT

I had a 30 year mortgage on one of my rental properties that I purchased in 2002. By adding $100 a month to each payment I paid off this property in less than 15 years. Now there is a formula one can use in an Excel spreadsheet that allows you to "plug in" values such as payment period, amount, interest rate and loan term. It will show you how long it will take to pay off a mortgage by changing the monthly payment (or whatever the payment period is, if not monthly.)

Now on the attached Excel spreadsheet I've set it up for monthly payments using the same formula that banks use to figure interest rate based on your outstanding balance each month.. In the first line of figure (line 3 on the attached) you can change the figures in columns A, B and C of row 3 with whatever your loan amount is, the monthly payment, and the Interest rate. You can change your monthly payment to see what difference it will make on your time to pay off the loan. The items you can change are in bold print. The sheet is password protected so that you can only change the variables and not accidentally mess up the formula. But if you want to play with it, I've set the password on this uploaded copy to "password" (without the quotation marks) so you can unprotect it if desired.

Re: Can I only pay my principle on my car note and not be penalized?

mkyiela — Fri, 23 Nov 2018 00:46:27 GMT

Carl, can you please email me the link? [email address removed]

Re: Can I only pay my principle on my car note and not be penalized?

kigwena — Wed, 28 Nov 2018 02:50:31 GMT

U don't know what you talking about. You can pay towards the principal anytime, still paying your monthly payments as required. Paying towards your principal will help you pay your car note faster. I used to sell cars.

Re: Can I only pay my principle on my car note and not be penalized?

Carl — Wed, 28 Nov 2018 14:19:03 GMT

When you make a car payment (or almost any type of loan payment) the first thing that payment is applied to is the interest due with that payment. Next, if the payment is late then any late fees, fines or penalties are subtracted from the payment. Then what is left is applied to the principle. So if your car payment is $300 a month and you want to pay $400 you can most certainly do that. Doing so will knock down your principle an additional $100 for that month.

But No, you can not pay *ONLY* the principle. In some situations you can pay only the interest. But unless you've got some kind of weird loan agreement (which would not be provided by a legitimate lender) you can not pay *ONLY* the principle.

I've helped friends in situations where they could not make a mortgage payment one month. So we called the bank prior to the due date of the payment and they allowed payment of interest only for that month and just tacked an additional payment on the end of the 360 month loan. This allowed the borrower to get through a rough month (major car repairs) and still keep their credit and payment history intact.

"U don't know what you talking about."

Selling cars does not mean one understands how loans work. Loans can be set up many ways, and in a fair number of cases conditions of the loans can be altered when doing so is favorable to the lender first, and the borrower second. Additionally, personal attacks in this public forum are uncalled for and serve no purpose. That's what facebook is for.

Re: Can I only pay my principle on my car note and not be penalized?

Tiffanyhutchins — Fri, 30 Nov 2018 22:24:46 GMT

I would be very interested in this formula for excel.

Re: Can I only pay my principle on my car note and not be penalized?

Carl — Fri, 30 Nov 2018 23:04:08 GMT

Only images are allowed to be posted as an attachment to posts in this forum. So I can't attach the excel document. Additionally, you can't post e-mail addresses on the public side either. So if you'll send me your e-mail in a private message on this board, I'll be happy to e-mail the document.

Re: Can I only pay my principle on my car note and not be penalized?

1208dhadyway — Mon, 03 Dec 2018 01:32:34 GMT

Hello
Your spreadsheet sounds like it can really be helpful. Can you share with me?

Re: Can I only pay my principle on my car note and not be penalized?

Irvincabrera18 — Mon, 03 Dec 2018 03:42:46 GMT

I need to buy one car

Re: Can I only pay my principle on my car note and not be penalized?

308nw2ndst — Mon, 03 Dec 2018 03:45:18 GMT

What Insurance is this

Re: Can I only pay my principle on my car note and not be penalized?

1016193 — Fri, 14 Dec 2018 13:35:48 GMT

Yes Can You Email Me ?

Re: Can I only pay my principle on my car note and not be penalized?

CAK — Mon, 17 Dec 2018 18:09:36 GMT

You have to pay the minimum amount of your car loan so they get their interest that month but you can pay extra on the principal in most cases. What I did was say you are paying 300 a month and your statement indicates that 200 is interest and 100 is principal, I'd designate that another 50 or 100 was for principal. If they give you payment books, I'd take out my monthly payment and then write myself a note on the last payment that I put that amount on the last payment. If I gave an extra 100 and the principal was 100 at that time, I'd just fold over the last payment as that is in essence what I did. I hope that makes sense

Re: Can I only pay my principle on my car note and not be penalized?

Char — Fri, 21 Dec 2018 00:29:19 GMT

Hello there,
I read your response and would like to request for the link for the spreadsheet.
Thanks you kindly

Re: Can I only pay my principle on my car note and not be penalized?

Scooter — Sat, 29 Dec 2018 20:06:37 GMT

Do you know how to send a private message?

Re: Can I only pay my principle on my car note and not be penalized?

gary_p — Thu, 03 Jan 2019 19:51:32 GMT

Hi , you're right that interest payments are higher at the beginning of the loan term due to the amortization schedule, but the actual amounts paid towards interest and principal will depend on the interest rate, principal amount financed, and loan term. For a 6-year loan term, you would need an APR of approximately 22.7% to achieve equal payments towards interest and principal in the last payment of the 3rd year. A lower APR will result in smaller interest payments and more of your payment going towards the principal. Please explore the calculator below to determine how your APR will impact your repayment schedule.

https://www.amortization-calc.com/auto-car-loan-calculator/

Re: Can I only pay my principle on my car note and not be penalized?

K9handler807 — Wed, 09 Jan 2019 02:59:14 GMT

Can u email me the excel doc sound useful

Re: Can I only pay my principle on my car note and not be penalized?

livn4him11 — Mon, 14 Jan 2019 00:20:04 GMT

I would love the excel spreadsheet you were talking about in this thread if you wouldn't mind, that sounds amazing! I'm in the process of building a house! Here is my email:
[email address removed]

Re: Can I only pay my principle on my car note and not be penalized?

bigben425 — Tue, 15 Jan 2019 05:05:34 GMT

you want to make your normal payment each month on time then within that same payment period make a principal only payment of as much as you want that will reduce how much you pay in interest by a lot while lowering you principal amount.

Re: Can I only pay my principle on my car note and not be penalized?

Davekellz — Tue, 15 Jan 2019 18:10:30 GMT

Also can you send me the graph?

[email address removed]

Re: Can I only pay my principle on my car note and not be penalized?

Farrock02 — Wed, 16 Jan 2019 01:44:39 GMT

That sounds like you have a very high interest rate. The best thing you can do is pay more every month. Anything above your required payment will go towards your principal. You should also look into refinancing for a lower rate

Re: Can I only pay my principle on my car note and not be penalized?

Credit1 — Thu, 17 Jan 2019 00:11:27 GMT

You can pay as much as you want towards the principal if you car payment is 400 you can pay as much as you want after that and it will.go towards the principal

Re: Can I only pay my principle on my car note and not be penalized?

waymaker3 — Thu, 17 Jan 2019 17:43:23 GMT

Unfortunately, no you can not. The most common way to lower your loan balance faster is to pay your regularly scheduled payment

( principle & interest ) PLUS an additional amount on the principle, if you're financially able to do so. Also, shop around for an auto loan which includes a lower interest rate (APR). And remember to never miss a scheduled payment. If it looks like you're going to miss a scheduled payment, call your lender to discuss any options they may offer. Best Regards, me.

Re: Can I only pay my principle on my car note and not be penalized?

DMcNeal — Fri, 25 Jan 2019 04:16:13 GMT

This is somewhat true but you can make payments toward the principle at any time as long as your loan is current.

Re: Can I only pay my principle on my car note and not be penalized?

tmccraigie — Fri, 25 Jan 2019 05:30:34 GMT

I would like the link for that spreadsheet of you can please

Re: Can I only pay my principle on my car note and not be penalized?

KatieH — Fri, 25 Jan 2019 18:41:35 GMT

I made a change to the Community settings to allow Excel files as attachments, so you should be able to upload now! Let me know if it doesn't work, or if you come across any other file types you'd like to upload. 🙂

Re: Can I only pay my principle on my car note and not be penalized?

Carl — Fri, 01 Feb 2019 00:11:13 GMT

Here is the spreadsheet for anyone who needs it. It's also attached to this post.

https://ttlc.intuit.com/community/s/dcgfr56345/attachments/dcgfr56345/other-finance-talk/389/1/intra...

Blocks in yellow can be changed. All others are locked to prevent accidents. However, if you want to unlock those locked cells, the password is "password" without the quotation marks.

Re: Can I only pay my principle on my car note and not be penalized?

Rosaye95 — Sat, 26 Jan 2019 22:59:58 GMT

Please send it to me! I’m a single 24 year old mother and I’m looking for strategies to save money.

Re: Can I only pay my principle on my car note and not be penalized?

Stevealdenjr — Tue, 29 Jan 2019 22:47:06 GMT

Greetings
I was reading through this forum and your comment.
Please send me the formula via email at:
[email address removed]

Re: Can I only pay my principle on my car note and not be penalized?

GIJoeKE89 — Wed, 30 Jan 2019 03:14:07 GMT

Yes you can pay towards principal any time but not ONLY principal.

Re: Can I only pay my principle on my car note and not be penalized?

Codydm — Wed, 30 Jan 2019 07:50:25 GMT

Any chance you can email me that excel spread sheet ?

Re: Can I only pay my principle on my car note and not be penalized?

barnettsl — Wed, 30 Jan 2019 15:41:14 GMT

Carl, please send me the Excel spreadsheet. My email is: [email address removed] Thank you!

Re: Can I only pay my principle on my car note and not be penalized?

KatieH — Wed, 30 Jan 2019 16:37:46 GMT

attached the spreadsheet to his last post! You can find it on Page 3 of this thread.

Here's a direct link to his Excel file: https://ttlc.intuit.com/community/s/dcgfr56345/attachments/dcgfr56345/other-finance-talk/389/1/intrate.xls

Re: Can I only pay my principle on my car note and not be penalized?

tami_trox — Thu, 31 Jan 2019 17:36:14 GMT

I would like this spreadsheet info please. Can you email me at [email address removed]. Thanks so much.

Re: Can I only pay my principle on my car note and not be penalized?

tami_trox — Thu, 31 Jan 2019 17:38:14 GMT

[email address removed]

Re: Can I only pay my principle on my car note and not be penalized?

sidendesire — Thu, 31 Jan 2019 23:35:40 GMT

Hello Caryl,
I just read your post on how you paid off your 30 yrs mortgage on 15 yrs. I couldn't help, but wonder how. Then after I read to the end I found the answer. It really caught my attention. That is because I have a car loan. So I was wondering if you could email the excel link or sheet that you used to calculate interest and principal ... so tht I can plug in numbers and see how quick i pay off my debt if I start paying more than the minimum.
My email is [email address removed]
Thank you..

Re: Can I only pay my principle on my car note and not be penalized?

KatieH — Fri, 01 Feb 2019 00:08:43 GMT

Hi there! Carl attached the spreadsheet to his last post... you can find it on Page 3 of this thread.

Here's a direct link to his Excel file: https://ttlc.intuit.com/community/s/dcgfr56345/attachments/dcgfr56345/other-finance-talk/389/1/intra...

Re: Can I only pay my principle on my car note and not be penalized?

chriscoleman102 — Sat, 02 Feb 2019 04:28:09 GMT

Carl, you are wrong my friend. I make principal payments all the time on my auto loan. You are required to make your monthly payment but once that is paid I make additional payments on principle balance only. My loan is a typical auto loan nothing special or fancy.

Chris

Re: Can I only pay my principle on my car note and not be penalized?

lkjulian1958 — Tue, 05 Feb 2019 00:12:13 GMT

Most lenders allow you to make additional payments. If you owe 300.00 per month pay as much more as you can afford. The extra amount will be applied towards the principle and not the interest. Lets Say if your payment is due the 28th if each month. If you can change the time of month you make your Payment then you will have more going towards your principle. Your payment is duethe 28th make you payment day on the 18th then you just saved the interest for that 10 days that you paid early. Your interest is calculated per each day. The early you pay the less interest you pay.

Re: Can I only pay my principle on my car note and not be penalized?

Skirmn — Tue, 05 Feb 2019 23:22:16 GMT

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.

Re: Can I only pay my principle on my car note and not be penalized?

Andrea — Thu, 07 Feb 2019 14:32:56 GMT

Thank you for this. Very helpful!

Re: Can I only pay my principle on my car note and not be penalized?

Dschrisz66- — Fri, 08 Feb 2019 18:01:14 GMT

When making payments to the principal by paying more on each payment You MUST specify that you want the extra money to go the principal or they will add it to whatever they want. Like interest or late payment fees. Always specify!!!

Re: Can I only pay my principle on my car note and not be penalized?

Rg11217 — Wed, 13 Feb 2019 22:38:57 GMT

Carl! THANK YOU. That is very useful I really appreciate it thanks.

Re: Can I only pay my principle on my car note and not be penalized?

jt-of-sw-fl — Wed, 20 Feb 2019 05:22:23 GMT

your note agreement would tell you. Should not normally be a penalty for paying extra each month. this only makes sense though if you dont carry a balance on higher interest rate credit cards. payoff the cards 1st.

Re: Can I only pay my principle on my car note and not be penalized?

maybird80 — Wed, 27 Feb 2019 15:48:50 GMT

Mortgage and auto loans are different. The formula in the spreadsheet will not work for auto loans. Here is why:

mortgage payments are different from car loan payments. A good way to think about mortgages is that one 30-year mortgage doesn’t have a single loan, but rather individual loans with terms of 360 months, then one for 359 months, then one for 358 months and so on, all strung together.

Each month sees a payment calculated with a smaller loan balance over the new shorter term, and while the total of the payment remains the same, the amount of interest you pay in a given month decreases while the amount of principal a person pays increases. If you prepay mortgage, you save money on paying interest.

Car loans can either be: simple interest add-on (or pre calculated) loans or simple interest amortizing loans. Simple interest add-on loans are written as a single loan. All of the interest that will be due is calculated up front, added to the total of the loan as a finance charge, then that sum is divided over the number of months in the term to arrive at monthly payment.

Each payment consists of exactly the same amount of principal and interest. Prepayment won’t save money because all calculated interest has to be paid. Simple interest amortizing loans are the most common type of auto financing available. They work like a mortgage, with a declining loan balance and declining term producing a constant monthly payment with changing compositions of principal and interest. Prepaying such a loan can save you some money.

Re: Can I only pay my principle on my car note and not be penalized?

Bob3 — Fri, 01 Mar 2019 23:14:56 GMT

Stop borrowing money. If you just think about it you are giving away your money. Save up and buy a car.

Re: Can I only pay my principle on my car note and not be penalized?

Amedina1490 — Sun, 03 Mar 2019 16:50:12 GMT

This thread is pretty helpful, however, what I have gathered somewhat confuses me in regards to my auto loan payments.

For a 5 figure loan, my minimum payment began at $350/mo for a 3.3% rate starting November of 2017. I have steadily paid $550 each month since I started and my minimum payment has been $0 for a while. Obviously I still have a balance and my payment has not changed, but that doesn't necessarily mean my $550 is 100% principal right? How is the principal/interest payment calculated then? Am I only paying interest at that point and a really good chunk of my payment is principal now? I guess I just really don't understand how my lender changed my min. payment from $350 to $0.

Re: Can I only pay my principle on my car note and not be penalized?

dcland — Fri, 08 Mar 2019 13:27:12 GMT

You must pay the minimum due. This usually includes a little bit of principle and lot of interest since auto loans are usually front loaded.
As far as paying any additional towards only the principle, you'd have to talk to your lender or read through your contract. With my loan for example, any additional payment I make is applied to next month's payment up to 2 months before being applied to the principle. However, if I call them and make a large payment (common during tax return season) it will all apply directly to the principle.

Re: Can I only pay my principle on my car note and not be penalized?

Bailsmb — Thu, 21 Mar 2019 02:09:11 GMT

When you send in extra payments, you need to make sure how the lender applies the extra funds. They may apply it towards your next payment and not toward the principal only. You have to be very specific with some lenders. They don’t always apply the overage to principal.

Re: Can I only pay my principle on my car note and not be penalized?

Lacayo — Fri, 22 Mar 2019 15:30:38 GMT

Yes, if you make the minimum payment, then you can pay some of the principle balance. But you have to make sure you specify when you make the payment you want it going to the principle. If not they will put most of it to the interest

Re: Can I only pay my principle on my car note and not be penalized?

theBasque — Sun, 24 Mar 2019 20:02:58 GMT

Super Carl,

Thank you for the spreadsheet.

Re: Can I only pay my principle on my car note and not be penalized?

Cody — Tue, 26 Mar 2019 14:51:11 GMT

You must have a higher interest rate. I think the smartest move would be to let go of the ego of have a newer car.. sell the car and buy a much cheaper car. It will save you so much money in the long run.

Re: Can I only pay my principle on my car note and not be penalized?

Paula856 — Tue, 26 Mar 2019 23:51:55 GMT

My car payment was a little over $278 a month but for all but 2 payments, I’ve paid $300 a month and it still has shortened the amount of time to pay it off, in addition to some of the interest.

Re: Can I only pay my principle on my car note and not be penalized?

Misfit — Tue, 09 Apr 2019 00:03:27 GMT

To make it a little easier you can also visit bankrate.com and play around with extra payments at various times of the year

Re: Can I only pay my principle on my car note and not be penalized?

Moretowealththanmoney — Sun, 14 Apr 2019 01:01:25 GMT

In a short answer, no. You have to make the minimum payment. Then pay extra and tell them, specifically, that the extra payment is to go towards the principle. Always do the payments separate so you can see and make sure it is going toward the principle.

Re: Can I only pay my principle on my car note and not be penalized?

Calculatorly — Wed, 24 Apr 2019 11:53:12 GMT

I agree with he is right, You can also use this Amortization calculator

Re: Can I only pay my principle on my car note and not be penalized?

Crash Riprock — Sun, 26 May 2019 17:45:26 GMT

Plus - by paying more you’ll, effectively reduce your interest rate

Re: Can I only pay my principle on my car note and not be penalized?

tygrtchr — Sat, 01 Jun 2019 13:24:22 GMT

Each of your payments contains an amount for principal and interest. It is perfectly fine to pay MORE than the minimum payment, but you can't pay less and specify that it is for the principal only. Adding even $25 month extra will knock the debt down early since the $25 goes toward the principal. The more extra you pay per month, the faster that car is paid off.

Re: Can I only pay my principle on my car note and not be penalized?

Keyezell — Sun, 30 Jun 2019 13:12:18 GMT

Hey Carl, what’s the best way to download the excel spreadsheet?

Re: Can I only pay my principle on my car note and not be penalized?

lloyd1981 — Wed, 17 Jul 2019 19:13:05 GMT

I'm always interested in spreadsheets that allow for calculations of time and money. Unfortunately, the link supplied results in error.

FYI

Re: Can I only pay my principle on my car note and not be penalized?

JQ83 — Wed, 17 Jul 2019 20:18:54 GMT

You can actually make principle only payments. I did through my credit union. Typically you have to speak with someone and tell them it is a principle only payment. This is usually done separately from your regular payments. That being said, it does depend on the lender.

Re: Can I only pay my principle on my car note and not be penalized?

Saiquan27 — Mon, 22 Jul 2019 21:32:08 GMT

Dont get a loan from the car dealership. Get a loan through a bank yourself and then go purchase the car. Rates are usually lower that way.

Re: Can I only pay my principle on my car note and not be penalized?

Mr_Roundtree — Mon, 22 Jul 2019 23:00:45 GMT

I recently had a Loan and what I would do is make two payments. The first was the minimum payment due, then the second payment would be whatever extra I wanted to pay on the principal. I paid off my loan six months early and saved on interest. It really depends on what type of loan you get so I always recommend when buying a car to ask the lender if you can do so without penalty. I have heard some lenders will not let you pay on the principal unless you are doing a payoff.

Re: Can I only pay my principle on my car note and not be penalized?

bdavis404 — Thu, 22 Aug 2019 23:03:04 GMT

can you please email me your excel spreadsheet at [email address removed]

Thank you so much!

How do i private message, I did a preview and it still blocks out my email

email is [email address removed]

Re: Can I only pay my principle on my car note and not be penalized?

xmasbaby0 — Thu, 22 Aug 2019 23:03:26 GMT

Please return to your post and go to the three little blue dots on the upper right so that you can edit out your email address. This is a public web site that can be seen by everyone. Do you want to receive emails and contacts from scammers and identity thieves pretending to be from TurboTax?

Re: Can I only pay my principle on my car note and not be penalized?

Grammyb2 — Mon, 16 Sep 2019 19:01:51 GMT

Steven, you can pay more on your auto loan and the more you pay the sooner your vehicle is paid off and less interest you pay. I have a loan on my vehicle and I pay more then my payments t is and the loan payment is paid for the amount it is and anything extra goes to principle. I don't know who you get your loans through but every loan I have had even for my mortgage was the same way. Anything paid extra went to principle to lower the interest on the loan. You must be dealing with some crocked loan companies if they are doing that to you or if that is what you think as I have never taken a loan to the end of the term as I have paid it off sooner then they have given me the loan for and paid less interest with no penalties....

Re: Can I only pay my principle on my car note and not be penalized?

jahman4us — Tue, 24 Sep 2019 03:21:06 GMT

This is my email so you can send me the Excel: [email address removed]. Thanks!

Emmanuel

Re: Can I only pay my principle on my car note and not be penalized?

KA12 — Wed, 25 Sep 2019 00:57:51 GMT

No to your intital answer.

However, I have had the same problem, except my payments were $495.33 with a 1.9% APR, 72 month loan. Tell me why I have paid over $6000.00 on a car, making more than the monthly payment and have only paid $2000.00 on my whole loan. I have a lawyer on this case, but im pretty sure the finance company isn't following the armortized schedule and more. I cant figure out where they have applied the money towards.

Re: Can I only pay my principle on my car note and not be penalized?

Jamarra — Fri, 25 Oct 2019 23:17:28 GMT

Refinance and lower your interest rate.

Re: Can I only pay my principle on my car note and not be penalized?

Fireflies102120 — Mon, 04 Nov 2019 13:46:41 GMT

Can you share the spreadsheet with me. I am not really familiar with excel, but am very interested. I do have the software on my computer, just never used it.

Re: Can I only pay my principle on my car note and not be penalized?

Critter — Thu, 07 Nov 2019 13:26:46 GMT

Read the contract carefully ... there may have been other fine print or nuances that have come into play ... like you were late on just one payment or that the loan is being computed at a higher rate however if you make all your payments on time during the loan period then the unpaid balance is forgiven making the overall rate the lower expected amount.

Re: Can I only pay my principle on my car note and not be penalized?

rodven — Tue, 04 Feb 2020 19:14:39 GMT

Another helpful trick, interest is accrued daily, so paying your note 2-3 weeks in advance will reduce the overall interest your paying on the bill monthly and the daily accrued amount will only start after that bill cycle is past (i.e. Car Note due on Feb 28th , make the payment on Feb 14th, you save on 14 days of interest and the interest doesn't start adding back up until Feb. 29th (since its a leap year)) 😉

Re: Can I only pay my principle on my car note and not be penalized?

mntnheaven3 — Fri, 07 Feb 2020 02:09:21 GMT

Yes even if you pay your reg monthly payment and an additional 100-150 dollars extra a month it will reduce your interest over the life of the loan and pay down the principle ... just make sure that you tell them to apply it to the principal!

Re: Can I only pay my principle on my car note and not be penalized?

JoeyC9000 — Thu, 13 Feb 2020 02:14:35 GMT

Kinda but no. With my first vehicle my payment was 270 and I was making 300 payments. After a few statements I saw that half was going to interest. So I called and asked if I could pay only the principle. No, itd have to be at least 80/20, which is reasonable. Needless to say, I paid it off early.

Now my second vehicle I got with a different place and theirs is 'unalterable'. So I'm making 500 payments on a simple interest loan. Meaning if I pay it on time then 40% goes to the principle but if it's late then the interest part receives more. As high as 80% to the interest. My last statement was 345 to interest and only 155 to the truck. 🤢

Re: Can I only pay my principle on my car note and not be penalized?

JoeyC9000 — Thu, 13 Feb 2020 02:20:02 GMT

can you email me that formula you use?

JoeyC9000 at gmail

Thanks in advance