[laynlo15]

Just pay cash like I did.

[Zeke.Malvo]

Originally Posted by laynlo15

Just pay cash like I did.

Sometimes paying cash isn't always the best option. There are ways to make loans actually work in your favor where it's better than paying cash.

[Capisce]

Yea... Making more than 2-3% on your cash isn't that hard. Why give up all that cash for that?

[ParkerAS]

Some people also don't always have 45k in cash sitting around

[Disarmer]

Originally Posted by Capisce

Yea... Making more than 2-3% on your cash isn't that hard. Why give up all that cash for that?

This. You can pretty easily make 6-8% on your investments, so spending that money elsewhere is smarter than dropping it into your car which is likely less than 3% if you have a decent credit score.

[datboi448]

My last loan through ally did not have this issue, which I paid off a couple of years ago. Maybe something new they are doing.

[laynlo15]

I was just kidding, I paid cash down. I have a 2.2 interest rate that my local dealer got for me. Believe me I don't have that much cash laying around right now. I was going to put that at the end of my I paid cash, but my daughter called me and I hit the post quick reply to soon.

[EFI]

My loan will be from Bank of America. I've heard some people are disappointed because Ally holds payments prior to applying them. The reason they do this is because the longer they wait to apply the payment, the more interest they can take. This is how a simple interest loan works. The workaround is to divide your payment in 2 and pay twice a month. For example, if your payment is $500,send two $250 payments 15 days apart. This way the principle gets applied twice instead of once. DON'T MISS ANY PAYMENTS!!!! And start with the half payments after you make your next full payment.

You're overthinking it. Just like the very first person that responded to you, the timing is different and some months may be more while others may be less.

In the end, you are paying the same exact amount of interest (as long as you follow the exact payment plan) regardless.

A 30,000 loan for 60 months at 5% APR for example is going to end up being the same in the end regardless of how long they hold the payment as you mentioned. That is calculated the day you start the loan and is what makes up your payments.

GM is not going to all of a sudden ask you for more money at the end or increase your payments due to the way they hold and apply payments. So if that doesn't happen, then you are not being charged anymore interest in the end.

[cellsafemode]

on loans where interest is computed daily, the amount of interest you pay over the course of the loan will be lower if you do things like splitting your monthly payment (2 per month roughly evenly spaced apart for example). It doesn't amount to much when your interest rate is low like < 3%

[Adrian97c]

In 2014 my Camaro was financed thru Ally @ 2.5, but my 2016 Camaro was financed at 2.8... So that the only thing I'm pissed about.


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