Sorry if this has been explained before but I suck at the search function (and math) and finance and on and on....
(revised)
Heres what Im looking at. My car payment is $499.08 a month (I just pay an even $500)
$358.48 goes towards interest
$141.52 goes towards principal
Im planning on paying my car off next May. I owe $24,333.45 on the loan. I have 61 Payments Left
Original terms of loan
APR 9.9
Finance Charge $8920.51
Amount Financed $27,013.25
Total of Payments $36,933.76
If I pay it off early since the $358 a month now Im paying towards interest is based on a 6 year loan and now this will only be a 2 year loan do I get the interest back (put towards principal) that Ive paid over?
I ask because I know with most car loans the interest isnt spread out over the length of the loan. They have you pay off the interest in the beginning and then youll be paying mostly principal at the end.
How exactly does this work and can anyone good with math help me figure out what I will have paid in interest by paying it off in 2 years vs. paying it off in 6?
Heres how its going to go. We have a set debt payback plan and I will continue paying $500 a month until December. Starting January I will be paying chunks of the car off (around $5k a month) to pay it off in (or around) May 2009.


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Those interest/principal figures that you listed seem SERIOUSLY AMISS for an APR of 9.9%- even $358 monthly interest applied to initial ^ $27K loan works out to an effective APR of 15.92%!! As monthly pmts. are made, amt. applied to interest should go down, and principal applied should go up. If APR is really 9.9% with no "gimmicks" , the initial interest pmt. should be roughly $223, and get progressively smaller with each payment. Offhand, the figures listed under "original terms of loan" seem to be roughly in line with a 72 mo, 9.9% loan. Still, I'd do some rechecking. Good luck- offhand, I'd say you'll be saving at least $5K interest on your proposed payoff schedule.

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