I have one more year left on my car loan. I want to pay off the remaining balance so i am done with car payments. My Question is will my pay off balance go down since i am going to pay it off early or am I still responsible for the interest on the loan as well.
2007-11-28 02:42:52 · 5 answers · asked by tays232003 3 in Business & Finance ➔ Personal Finance
I should add my lender said I do have to pay everything including the interest. I am just wondering if thats true or if they are trying to pull a fast one on me.
2007-11-28 02:46:06 · update #1
Unless otherwise stated in your loan contract, you shouldn't have to pay all the interest. In some states like Virginia, you do have to pay a certain amount of interest. On my car loan, it was something like $50 in interest that had to be paid. With only a year to go, you should have already met that, if it was a requirement. Interest should be accrued to your loan on a daily basis. If you pay off the loan today, 11/27 then you shouldn't be paying interest for 11/28.
Just check all your loan documents and if there is anything you don't understand, ask another loan officer.
2007-11-28 03:23:40 · answer #1 · answered by terribrooke 5 · 0⤊ 0⤋
It all depends on the company you financed with. You need to look at your loan contract and you should have a paragraph about early payoff. Some companies will charge you a fee to pay your loan off early. The reason they have a fee is because they were expecting to collect certain funds from you with this contract. Now having to pay all the promised interest sounds a bit shady. You are giving them the money early while there might be a fee, I have never heard of paying ALL the interest. My suggestion is to check your contract and call them to ask about what the loan pay off amount is. Good Luck!!!
2007-11-28 02:57:54 · answer #2 · answered by SC Chick 2 · 0⤊ 0⤋
Td Bank Loan Payoff
2016-11-10 11:39:41 · answer #3 · answered by ? 4 · 0⤊ 1⤋
Like any loan you have a pay off balance which is the principal balance. If you pay off the principal you should not be held liable to pay off the interest. However, some loans have a penalty if you pay off a loan early so find that out. I too have a car which i want to pay off next year to save money on the interest I may have to pay
2007-11-28 03:24:55 · answer #4 · answered by prodigychild_21 4 · 0⤊ 0⤋
You might have to pay part of it, depending on your agreement, as a penalty for early payoff, but shouldn't have to pay it all. Sounds like they are telling you truth, not trying to pull something.
2007-11-28 03:50:27 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
From my co-worker who is a financial manager that he told me is it illegal for them to charge you interest when you pay off early. Pull out your contract and read it again, and I hope there is nothing like you agreed on paying interest even if you pay off early.
2007-11-28 03:28:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Just ask them what the pay off is nothing else. Also read your contract see if there an early penalty.
2007-11-28 02:50:15 · answer #7 · answered by Flat_out_Bob 7 · 0⤊ 0⤋
pay it off faster might be my recommendation if you'll be able to, despite the fact that ask them how they pass approximately it, cos a few locations will nonetheless cost you all of the curiosity and others will cost an early go out price
2016-09-05 16:01:58 · answer #8 · answered by Anonymous · 0⤊ 0⤋
If I payoff my car loan early do I still have to pay the interest?
T.R.Y
T.H.I.S.
S.I.T.E
W.H.E.R.E
Y.O.U
C.A.N
F.I.N.D
T.H.E
B.E.S.T
S.O.L.U.T.I.O.N
F.O.R
Y.O.U
2015-01-10 08:16:39 · answer #9 · answered by ? 1 · 0⤊ 0⤋
Interesting thread!
2016-08-26 08:34:32 · answer #10 · answered by Anonymous · 0⤊ 0⤋