Just financed a car and wondering how can I avoid the $6000.00 in finance charges (7.48% apr/75 mths) on an auto loan. Not looking forward to all that interest so any advice will be greatly appreciated. thanks.
2007-08-07 05:52:16 · 14 answers · asked by poki99 2 in Business & Finance ➔ Personal Finance
Take out a home equity loan to pay off the car loan. Home equity interest would be deductible on Schedule A - Itemized. Auto loan interest is not deductible, unless you use vehicle for business purposes (not commuting back and forth to work). Pay off car loan immediately. Get car loan with 0% interest. Finance charges are $6,000? How much is car loan itself? Maybe get less expensive car next time?
2007-08-07 07:22:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
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2016-09-26 13:38:20 · answer #2 · answered by Shelby 3 · 0⤊ 0⤋
How To Avoid Finance Charges
2016-11-04 21:42:10 · answer #3 · answered by lantey 4 · 0⤊ 0⤋
Best way to avoid auto loan finance charges is to pay cash for the car. You save money till you have enough to buy the vehicle.
Stringing out payments for more than 6 years was really bad. If you'd put more down or gone with bigger payments and shorter term, you would have saved a ton of interest.
I hope you didn't roll any balance from your trade in into that new car loan.
2007-08-07 06:17:21 · answer #4 · answered by bdancer222 7 · 0⤊ 0⤋
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RE How to avoid finance charges on auto loan?
Just financed a car and wondering how can I avoid the $6000.00 in finance charges (7.48% apr/75 mths) on an auto loan. Not looking forward to all that interest so any advice will be greatly appreciated. thanks.
2014-09-13 23:23:48 · answer #5 · answered by ? 1 · 0⤊ 5⤋
You can't avoid them altogether unless you pay off the car now. But you can reduce the amount of interest that you pay by making a premium payment in between your regularly scheduled payments. So if your payment of $500 is due on the 1st of every month, on the 15th of every month make a premium only payment of 1/2 - so $250.
You'll pay it off years sooner and save thousands. I've attached a link to a payment and amortization calculator with the extra space to add in additional payments.
*when sending in an extra payment to go towards your premium, you must stipulate that is its purpose, or they'll just treat it as an early payment.
2007-08-07 06:05:10 · answer #6 · answered by slushpile reader 6 · 0⤊ 0⤋
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RE:How to avoid finance charges on auto loan?
2014-07-02 17:03:26 · answer #7 · answered by Anonymous · 2⤊ 1⤋
Pay it early, pay a little more than the fixed amount each month, sell the car when you get to a point where the loan is less than the value of the car or trade it, refinance after the fact.
2007-08-07 05:55:07 · answer #8 · answered by smckech1972 4 · 0⤊ 0⤋
pay the balance in full.
or find someone who will re-finance the vehicle (or give you a loan) at a cheaper APR.
2007-08-07 05:55:02 · answer #9 · answered by Deep D 2 · 0⤊ 0⤋
Pay it off.
You bought a car using the bank's money. The bank is going to charge you interest until you pay them back in full.
2007-08-07 05:56:36 · answer #10 · answered by Wayne Z 7 · 1⤊ 1⤋