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Old 04-04-2009, 06:26 PM   #1
doggydog
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Default interest on a car loan, does it vary from month to month?

Just curious, lets say you have a loan of 25,000. your montly payment is $450 for 72 months. Your total is $32,400 after ttl and financing.
On your monthly statement shouldn't it be the same amount deducted from principal/interest paid for the whole 72 months? Just curious.
Also lets say you send three payments of $900 each. That automatically puts you ahead three payments. Can the financing company than charge you interest for those three months that you paid in advance , per say you were to skip three payments. thanks for any useful info.
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Old 04-04-2009, 06:35 PM   #2
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Default Re: interest on a car loan, does it vary from month to month?

Interest may vary (increase) due to late payments

As for early payments, check the fine print in your loan paperwork
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Old 04-04-2009, 06:37 PM   #3
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Default Re: interest on a car loan, does it vary from month to month?

It should go down over time . . .
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Old 04-04-2009, 07:22 PM   #4
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Default Re: interest on a car loan, does it vary from month to month?

No its not the same. At the beg of the loan more money goes toward interest. Are you in highschool?
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Old 04-05-2009, 10:00 AM   #5
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Default Re: interest on a car loan, does it vary from month to month?

most fixed term loans are preloaded, meaning you pay the interest up front and then the balance. Some banks will do an intrest as it actually is for that month (IE if you pay more on your car payment, you pay less inetrest because you pay the loan off early).
when I paid off my cars early, my bank had to issue me a check for the difference in intrest paid versus what should have been paid due to loan being paid off early.

Banks cannot force you to pay a penalty for paying your loan off early....with one exception if you take a loan out one day and then come in within a preset timeframe (usually 30 days) and pay it off. It will be in the loan's terms and conditions
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Old 04-05-2009, 10:06 AM   #6
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Default Re: interest on a car loan, does it vary from month to month?

I pay more than the minimum payment on my car every month and my minimum payment gets lower and lower every month. I know it's irrelevant but yeah.
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Old 04-05-2009, 10:07 AM   #7
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Default Re: interest on a car loan, does it vary from month to month?

^eventually it will reach 0 and tell you not to send a payment at this time I am about -2K on my loan
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Old 04-05-2009, 10:42 AM   #8
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Default Re: interest on a car loan, does it vary from month to month?

There are a lot of banks (like Wells Fargo) that will take $90 worth of intrest the first month, $85 the next, $83 the next and so on, simply so they will still get more money if you pay your car off a year early or so.
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Old 04-05-2009, 11:59 AM   #9
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Default Re: interest on a car loan, does it vary from month to month?

my payment is due every 29th when i pay let say the 10th the following month the interst is very low but after that i have to pay it again on the 10th or else it adds up interest everyday till the 29th of the following month
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