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Discussion Starter #1
When you're making extra payments on your cars, how do you let your lender know that you want the extra money applied to the principle only?

I know the regular monthly payment is split between principle and interest like 40% toward principle and 60% toward interest for example.
 

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Yep, generally any amount that you pay over what they ask for goes towards the principle. That's why you want to pay off as much as you can in the first two years. This lowers the amount of interest you will pay on the loan.
 

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Discussion Starter #6
Noggin said:
well damn, if i overpay, the extra money automatically goes towards next month's payment. I can pay 4 months worth today and not get a bill for 4 months.
I do that with my insurance, one payment every 6 months.
 

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Discussion Starter #8
ScottSpec-v said:
yeah same with me, you have NMAC right? I have to put a note in every time saying apply rest to principal. My loan in 458 a month, i treat it like it's 850, which i pay every month. Should be done pretty soon.
No, I'm with another lender--NMAC didn't approve me b/c I was a 1st time buyer (they're loss! :)) I think I'll just write a memo on the check or something, that should work.
 

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HyperSonic said:
No, I'm with another lender--NMAC didn't approve me b/c I was a 1st time buyer (they're loss! :)) I think I'll just write a memo on the check or something, that should work.
heh, i was a 1st time buyer on my gxe and they approved me for 2.9% phuckers wouldn't give me less than 4.9% this time around though
 

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Hell, I got 4.9% with a credit score of 535. My payment is $276 monthly.

I bought my car in Denver, but I know that in Arizona, they outright rape people. People with great credit getting like 15% - 18%, and trying different dealerships to try to get the lowest interest rate.

I found that joining a credit union guarentees the lowest rates, even with credit being taken into consideration.
 

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well i got 0.9%, my payments ar $305.70/monthly, so did anyone call and find out if you pay more it goes to the principle?
 

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Mazda Credit financed me as a 1st time buyer at 8.75% . Not a great rate, but I didn't even have a credit card at the time - nothing but the bills I was paying (rent, electricity) and student loans that my dad cosigned for. I got this w/o a cosigner.
 

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Pretty sure they won't let you apply extra payments towards the principle. I think it will speed up the loan payoff but won't reduce the totsl interest that you end up paying. Pleas notify me if I'm wrong (.......aynyone whao has done this with NMAC)
 

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all loans car or anything.... extra money goes directly toward principle...by paying extra money they show your next months bill being less but if you continue to pay extra they should recalculate the intrest at the end of the loan..if i remember correctly and pay you back..but i may also be mistaken
 

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Noggin said:
well damn, if i overpay, the extra money automatically goes towards next month's payment. I can pay 4 months worth today and not get a bill for 4 months.
No, not true. Because you're paying on ONE payment. You CAN tell them to just amortize the $$ over your next few months....but doing what you're talking about pays off extra principal only OR pays off multiple months ONLY. One or the other.

HyperSonic- You do not have interest figured into insurance, MacGuyver ;)
 

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HyperSonic said:
When you're making extra payments on your cars, how do you let your lender know that you want the extra money applied to the principle only?

I know the regular monthly payment is split between principle and interest like 40% toward principle and 60% toward interest for example.
Screw paying extra. Just split your payments. Say your payments $300 a month, for example, due on the 26th. Pay $150 before the 10th, then the other $150 before the 26th. You're essentially fooling the system into applying the bulk of the first $150 towards interest, THEN the rest of that plus the other $150 towards the principle. Dedicated payments in this format can cut your loan period down by 4-8 months, maybe even more, your interest rate depending. This advice given to me by my good friend, Sr. VP at Household Finance. Keep that extra $$ you're paying in the bank, collecting interest. Or invest that extra nut. Don't believe me? Try it one month. Certainly can't hurt ya.
 

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what you have to do for principle only is:

send in your normal payment,

in a seperate letter, enclose a payment and a letter stating principle only.

if you send one big check, your payment will just be lower the following month. but the interest paid will be the same.

i got this info from the finance/sales mgr's at 2 diff nissan dealers.
 

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Discussion Starter #20
Nismo2k2specV said:
what you have to do for principle only is:

send in your normal payment,

in a seperate letter, enclose a payment and a letter stating principle only.

if you send one big check, your payment will just be lower the following month. but the interest paid will be the same.

i got this info from the finance/sales mgr's at 2 diff nissan dealers.
Good info, thanks. :)
 
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