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Old 07-29-2020, 10:22 AM   #53
ember1205
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Drives: '20 2SS Convertible 6MT
Join Date: May 2020
Location: CT
Posts: 1,223
Quote:
Originally Posted by Xaxas View Post
Called GM Financial 2 weeks ago, paying $110 over min to have neutral/positive equity faster to refinance with someone else, asked if my account could be set up so that any payments over the min goes towards the principal and they told me "nope, every time you pay over the min, you have to contact us to inform us of this so we can make sure it goes towards to principal"
I've seen this with many lenders. On the one hand, it's completely stupid. On the other, pre-payments are merely setting you up for a smaller future payment or even being able to "miss" a payment. What I have never tried to find out, though, is whether having that money in-hand early does anything to reduce the accruing interest. If not, then it's not a good way to deal with them and the money should just be deposited into your own savings account until you want to make a "bulk" principle payment.
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