Divide your payment into weekly payments, For example, Payment is $400 a month, just pay $100 a week. This pays it off faster without, putting extra money from your budget. You will notice you will start being a few months ahead of the due date. Then all of the payment will be going towards principal only. Banks hate when people do this.
@@Pokka676 No each day you incur interest. When you start paying weekly by dividing your payment up. More money will be hitting the principal. The Banks will be getting less interest from you. Just try it and you will see what I am talking about. You will start be getting months ahead of the payment. Just try it. It work for me.
I make double payments each month. When I bought my new Acura they had no special financing from the manufacturer and I got stuck with a 7% loan with a credit score of 800. I was pissed to say the least.
just refinance after 6 months. I got 8% from the dealer, waited 6 months and got 1.99% with a local credit union. This was before the interest rates got so high
@@joshuawilliams6153 when you refinanced how was the process did you have to put any money down? Similar situation with me, just got a 2021 camaro SS with 750 credit score but my interest is 9.4% and i want to refinance soon
Paid off our 2022 Suburban diesel in 9 months ( large down payment). No payments on 3 vehicles. Mortgage is in the next 🎯. Just a few years remaining on the house.. Imagine how much less stressful life would be not owing anything to anyone (except for taxes, utilities, insurance).
@@briandeluca6908 nothing fancy needed, extra principal payments can be made at any time or can write a check and pay it off when enough money is saved.
I’d have to say the gap insurance advise should be taken into consideration, especially for those who finance their cars. If it’s close to being paid in full, definitely go for it but if that car is totaled and the value of the car doesn’t add up to what you owe. You’ll be kicking out that difference that the insurance company won’t.
Keep your gap insurance!! I financed my car brand new last year for $34,000 and just last month my car was totaled in a hit and run. The insurance paid off the value of the car ($25,000) and the gap insurance is paying the remaining balance. Without gap insurance I would be responsible for paying that balance monthly.
The dealership fd me over redid the contact. Took off the gap I didn’t even notice. Ended up getting hit by a red light runner and they only gave me a certain amount for my charger and had to pay like 4K out of pocket
Even splitting up your payment evenly paying half every two weeks after 12 months you will have paid the equivalent of 13 months. Combine this with rounding up to the next $100 or Even $50 and it will save you even more.
In July I bought a new car. Put 20k down and instead of $400 a month, I pay extra $100 so $500 on a 3/4 yr loan) I hope it makes a difference in the long run
Rounding up to the nearest hundred doesn’t really work that well. Most car loans require 3 payments ahead before applying to principal. So, an extra 50 bucks per month on a 1,000 car payment (3,000 to get to 3 months ahead) will take you like 5 years to pay any principal.
The worst decision I did to take a car loan. I wish someone talked me throughout how exactly it works and how much extra money will go out of my pocket another lesson learned.
I like to just get the best interest and lowest payments and send more toward principal every week...Ima. make my 600 payment and send 250 a week extra towards principal... I make money in the stock market so my capital makes me money so I can use that money to pay off all debt amd still have my capital
Free Palestine and the u.s in conclusion lol “used to repo your car in 4 months now they repo in 2 months” literally after intentionally causing a pandemic and putting us all in this stupid situation
Divide your payment into weekly payments, For example, Payment is $400 a month, just pay $100 a week. This pays it off faster without, putting extra money from your budget. You will notice you will start being a few months ahead of the due date. Then all of the payment will be going towards principal only. Banks hate when people do this.
I don’t get it. There is 4 week in a month. Isnt that same thing by the end of the month you still pay $400. 🤷♀️
@@Pokka676 No each day you incur interest. When you start paying weekly by dividing your payment up. More money will be hitting the principal. The Banks will be getting less interest from you. Just try it and you will see what I am talking about. You will start be getting months ahead of the payment. Just try it. It work for me.
Car Note: 400. If you pay bi weekly pmts of 450
By doing it that way it doesn’t allow the interest to be amortized over 30 days .
Smart move by paying every week 😉
I make double payments each month. When I bought my new Acura they had no special financing from the manufacturer and I got stuck with a 7% loan with a credit score of 800. I was pissed to say the least.
just refinance after 6 months. I got 8% from the dealer, waited 6 months and got 1.99% with a local credit union. This was before the interest rates got so high
Hi 20.9% here 😖
I got mine 14% high
@@joshuawilliams6153 when you refinanced how was the process did you have to put any money down? Similar situation with me, just got a 2021 camaro SS with 750 credit score but my interest is 9.4% and i want to refinance soon
The times I bought a vehicle the interest was over 23%, which in turn motivated me to save a large down payment and pay off my vehicles within a year.
Paid off our 2022 Suburban diesel in 9 months ( large down payment). No payments on 3 vehicles. Mortgage is in the next 🎯. Just a few years remaining on the house.. Imagine how much less stressful life would be not owing anything to anyone (except for taxes, utilities, insurance).
Check out an all in one mortage. It might help you even more
@@briandeluca6908 nothing fancy needed, extra principal payments can be made at any time or can write a check and pay it off when enough money is saved.
Just bought a new Jeep! Both of us have a 700s credit score and got hit with 7% interest rate! Need to get this one paid off asap!
7%? What's the problem? Most car loans are at least double that..
@@AnnoyedCabezonFish-zs4td 7 percent is about the lowest you can get these days
7% is great you loon
7% is outrageous. Go through a credit union. Interest rates are much lower now.
@@jaredluzader1285 idk about that. I have a 760 credit score and got my first new car ever at 5.9%
I’d have to say the gap insurance advise should be taken into consideration, especially for those who finance their cars. If it’s close to being paid in full, definitely go for it but if that car is totaled and the value of the car doesn’t add up to what you owe. You’ll be kicking out that difference that the insurance company won’t.
Agreed 👍
Id keep the gap insurance, its really worth it. Accidents can happen anytime, and id rather have that protection
The GAP is very important.
Keep your gap insurance!! I financed my car brand new last year for $34,000 and just last month my car was totaled in a hit and run. The insurance paid off the value of the car ($25,000) and the gap insurance is paying the remaining balance. Without gap insurance I would be responsible for paying that balance monthly.
DO NOT CANCEL YOUR GAP INSURANCE! Horrible advice. That's how you end up paying for a car that was totaled because someone else's negligence.
The dealership fd me over redid the contact. Took off the gap I didn’t even notice. Ended up getting hit by a red light runner and they only gave me a certain amount for my charger and had to pay like 4K out of pocket
Even with full coverage on your car?
Yes with full coverage. Full coverage ain’t enough get gap insurance if you’re able to it is very convenient.
Even splitting up your payment evenly paying half every two weeks after 12 months you will have paid the equivalent of 13 months. Combine this with rounding up to the next $100 or Even $50 and it will save you even more.
If you plan on refinancing take advantage of any lenders that offer no payment for 60 days, that’s 2 extra principal payments you can apply.
Always make extra payments towards the principal!!
Very practical loan payment tips here! 💡
Your strategies are more realistic ❤
In July I bought a new car. Put 20k down and instead of $400 a month, I pay extra $100 so $500 on a 3/4 yr loan) I hope it makes a difference in the long run
After 9 months how’s it going?
@@megajam5286 ok I think. I’m at 20,353 balance. Started at 25.000. Have a feeling it’s not going down fast enough lol
@@megajam5286 maybe I should pay $100 a week?
Rounding up to the nearest hundred doesn’t really work that well. Most car loans require 3 payments ahead before applying to principal. So, an extra 50 bucks per month on a 1,000 car payment (3,000 to get to 3 months ahead) will take you like 5 years to pay any principal.
@@CurieBohr mine loan please gives me the option to make principal only payments
Not that I have the extra money at the moment to do that though
Great information Laura. Thanks
Ez to just shop online lowest auto loans . Credit unions like PENFED low so join one
Thank you for your golden knowledge!
You consistently provide so much valuable information!😀
The lender my dealership uses makes it next to impossible to make extra payments.. Like they make insanely inconvenient
I pay $40 extra a week and add $20 extra a year on top of that then pay big lump sum a year when I get my tax return
The worst decision I did to take a car loan. I wish someone talked me throughout how exactly it works and how much extra money will go out of my pocket another lesson learned.
Very good info
Thanks
Buy a house, get a car loan off the side of the mortgage at the same rate and not worry about it. Simple.
I like to just get the best interest and lowest payments and send more toward principal every week...Ima. make my 600 payment and send 250 a week extra towards principal... I make money in the stock market so my capital makes me money so I can use that money to pay off all debt amd still have my capital
Great vid!
If you pay more your balance will go down and if they take your vehicle you will be without a vehicle
Very inciteful 🙄
Then why are you here genius?
8th thumbs up!!
Thanks Bob - Happy Friday!
i planned to have Lauren do it ....🙆🤯🤣
🤣
Chrysler capital is front end loading the loans now with interest so they get their profits back first.
How about not getting a car loan. Save the money first and buy a vehicle later. It is stupid to buy a car with a loan.
Free Palestine and the u.s in conclusion lol “used to repo your car in 4 months now they repo in 2 months” literally after intentionally causing a pandemic and putting us all in this stupid situation