1. No it's great.
2. I believe so. Not sure though
3. Why would they turn down your money?
4. Pay it. Then you'll own it, not the bank.

The bank just wants your money. They don't care when. (as long as it isn't late)

 

not true

you signed a deal with a bank that u will pay them $500 a month for 10months (example)

they dont want the money early.. they want u to pay it the way u promised

will have a - effect on your credit i believe..

 

-it does not adversely effect your credit to pay off your loan early.
-You wont pay less if you go ahead and pay it off, the interest is money owed to the loaner for fronting you the money for your car... and they will always get their money
-there may be a fee that is owed to pay off your car early, you need to consult your copy of the loan and check to be sure.
-its your money bro, do with it how you want. I, however, would take all that saved money and blow it on my car, but i am not fiscally responsible

 

I have been doing some research and I remember reading something about being penalize for paying off an auto loan before its contract. Has anyone paid off their auto loan before their loan lifetime?

 

Only if the financing company has some sort of clause where you can't. It wouldn't effect your credit score. I know if you finance through Honda there is no penalty.

 

It is not common to have early pay-off fees on auto loans but you can check with your lender to verify. It will not hurt your credit to pay it off early. In fact, it will raise your credit score slightly. I say pay it off. It is a great feeling owning it free and clear!

 

Early pay-off fees are against the law in Wisconsin.

 

You do pay less interest if you pay it off before the loan ends. Interest is based on the remaining principle that you still owe. Less principle = less interest.

 

DEAD WRONG
You will pay less if you decide to pay off early...I've done this for two mortgages and 2 Honda's financed through HMFC...as long as there's no early pay-off fee (most states don't)

-You wont pay less if you go ahead and pay it off, the interest is money owed to the loaner for fronting you the money for your car... and they will always get their money

 

UPDATE:

Okay, so I called up my finance bank and here are the most current numbers:

Current balance: $3,974.80
Payoff balance: $3,990.24

My monthly payments are $277.40
My maturity date is : May 3, 2011 (14 months left)

277.40 x 14 = $3,883.60

Can someone explain why the current balance, payoff balance, and total monthly payments are so different?

If this is the case, then I would save more money if I just continue to pay my monthly payments, right?

 

You have 15 payments left, not 14.

Mar '10
Apr '10
May '10
June '10
July '10
Aug '10
Sep '10
Oct '10
Nov '10
Dec '10
Jan '11
Feb '11
Mar '11
Apr '11
May '11

15 x $277.40 = $4161.00

Paying it off early would save you $170.76.

 

^ :1:

 

thanks for correcting me ^^

 

ur welcome :laughing:

 

If you financed the loan through Honda then you should just keep the cash and keep paying the monthly payments.
They charge you all the intrest in the start of the loan, so with you owing only 3 grand, you probably arent paying any more intrest.

 

I believe this is true....I've seen my principal to interest ratio do a 180 after the first 12-18 months.


It's really up to you.

I put NO money down on my Civic and they were upset when I had precalculated my car payment. I was off by about 43 cents....yeah I had figured my APR as well.

I put about 2500 (my shoulda been DP) into stocks and now that has matured to 10k. :dancing:

 

It was nice paying off, or buying a vehicle and then flipping it and having some rich dude pay my SUV off and seeing my credit score hit 800 when I was 22.

I say pay it off 100%!

 

I bet it would feel good to not have to pay one less bill every month. If I do pay this car off, it would be my first completed finance contract loan. I hope my credit score bumps up because I will be buying my Nissan 370Z later this year. BTW, I'm not trading in my Si.