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Old 07-29-2020, 10:16 AM   #51
ember1205
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Drives: '20 2SS Convertible 6MT
Join Date: May 2020
Location: CT
Posts: 1,223
Quote:
Originally Posted by foshjowler View Post
The last couple of cars I've bought I have gotten my loans through reputable dealers, and this is exactly how it works. Currently my loan is through Wells Fargo, and I go on their website to make payments. I personally pay weekly and round it up to the nearest multiple of 10. I did the math one time, and just paying weekly I would pay off the loan 6 months sooner over the course of a 6 year loan, and pay a few hundred less in interest. Obviously your mileage will vary based on the details of your loan. Paying extra only improves that.
I've always followed the following premise when it comes to over-paying and/or paying early...

If I am able to pay more than the scheduled amount, or can pay ahead of time, I don't. Instead, I put that money into a savings account with a higher yield and let it work for me. As long as the interest rate that I am earning is either better than, or only slightly less than, the interest rate of the loan, putting that money away helps me to build a financial cushion should I need it during the course of the loan.

Once I have enough money saved up from doing the above to where I can pay the loan off in full, I do so.

And remember: If you ever have to choose between making a car payment or paying rent, make the car payment. You can live in your car but you can't drive your house. lol
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