Monday, December 12, 2011

Auto loan payoff amount higher than current balance?

The outstanding balance on my auto loan is $13,591, however the payoff amount as of today is $13,706. I've made eight payment thus far, and my interest rate is 6.14%. Shouldn't the payoff amount be less than my outstanding balance?|||The outstanding balance you see on your statement is the balance up through your last payment. The payoff amount will include accrued interest from the date of the last regular payment until the date of the payoff, so there are probably a few days of interest added to your balance after your last monthly payment.


It's perfectly OK, but if you have a question, or if you think it's too high give the lender a call. Also, you can estimate the daily interest amount by multiplying 6.14%/365 X number of days from last payment until payoff date.|||the first 3 years of payments of an auto loan go towards interest. its usually the last year of payment that actually goes towards the principle of the loan. Thats why it is such a bad idea to trade in a car to buy another before the loan on the one is finished. you will always be upside down.


There is NEVER a penalty if you pay more than what the normal payment of your car is. If you pay the amount set when you got the loan you will pay for the car till the end date of the loan and will be upside down for the majority of the time you are paying for it. BUT if you have any extra money each month, throw it to the car payment. Any payment over the set amount will all go towards the principle of the car. and if you keep that up, you can make it where you are not upside down in the payments, and than the car is actually worth something. But it is soooo true what is said about driving a car off the dealor lot. No matter what you paid for it, unless you paid cash. than you are upside down with you payments the moment you drive off the lot. Pay whatever extra you can, it will help in the long run..|||It can really save you time to just get a car loan price on the web to see what the going rates are. You might be really suprised. Also if your credit is not good, a lot of them are more willing to help you.



What I usually tell folks is that an internet quote at http://autoloan.saverightnow.info is the way to go.|||If you've made any late payments, those fees can be added to the end of your loan, causing your pay-off amount to be higher than your outstanding balance. You could possibly have $115 worth of late fees that have piled up.

No comments:

Post a Comment