sandman
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Pay the 4500 and open a new credit card with 0% intr rate,transfer balance to new card. |
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Wabuzzi
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Whatever you do, you should make sure there is no penalty for paying it off early. |
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Barry auh2o
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Paying off 450O of a 6500 loan would save you A LOT of interest.What troubles me is, you no longer have$ 4500.00. for emergencies unless you start saving back that $ 4500.00. |
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fmxkrazyone
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Anything you pay that is more than your usual payment goes towards the principle, not the interest, so I say it would be a good move. You then might be able to get a better interest rate by refinancing with another company depending on how your credit is. Either way making that kind of payment towards an auto loan will only help you in the long run. |
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ME
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Yes. negotiate a better interest rate first. |
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themeindzeye
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See if you can't negotiate a better interest rate first. They probably won't want to if you're going to be paying off early. ;)~ Also, you need to double-check your contract and make sure there aren't any clauses that assess fees for early pay-offs. But definitely pay the 4500, either way. You're on your way to less debt. Good for you! ^_^ |
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jdkilp
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Neither. I would first see if there's a penalty for early pay off. If not, I would send in the $4500, but make absolutely certain that the company understands you're using this to pay down the PRINCIPAL, and nothing towards interest. |
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paulwalksin
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You should pay the $4500 and shop for a refinance loan on the vehicle if there is still value to the vehicle. Never a bad idea to pay off a large chunk of the loan. Interest is calculated based on average loan balance for the period, so even if you don't refinance, more of your monthly payment will go towards principle each month. |
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darrenwelsh429
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Paying it down is a good idea, but trying to refinance is probably not worth your time. Even if you could drop 2% per year and have 2000 balance that is only $40 you would be saving. If you can get a better deal for free it may be worth talking to your bank, but don't spend any money to get a new loan. |
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timo_10143
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i guess you should but auto loan interest is usually not that hgih compared to credit cards. calculate the interest you're payhing in credit card and compaire it to care payoff.
LATER ADDED: HEY JOE ABOVE. WHERE'D YOU GET THAT RANGERS LOGO? I WANT A RED WING LOGO |
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Bob
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They prob will not give you a lower rate.
If you can afford to pay that much, go for it. Then you should be able to make 1/2 or smaller payments until the rest of the 2k is paid off.
Check to make sure that your loan does not have a penalty clause for early payoff. It shouldn't but check just in case.
Since the bulk of your initial payments are Interest, you should pay as much off within the first year(s) of your loan. That way Interest is only be accrued on the smaller balance. |
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oh uhm gee
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Let them know what your willing to pay for a lower interest BEFORE you pay . And the person before me is right, check for penalties bc that would majorly suck. |
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Club_obi_wan
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I would say it depends on how quickly you'll be able to pay off the remaining 2000. Before you do anything call the loan company and see if this is an amortized loan or a simple interest loan, the difference is that if the loan is amortized you're paying more interest in the early loan payments and less interest as you approach the last loan payment.
If the loan is amortized ask them if they'll advance your payments based on the amount of principal you pay off (4500), but be sure to explain that you do not want the loan re-amortized, but rather that you want the payments advanced.
If it's a simple loan I'd just pay the cash you've got and work as hard as you can to come up w/ another 2k. |
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nate p
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If your payments have been on time through out the loan, i would try before i sent the money in. It seems like they would be more willing to work to keep the business if the amount is bigger. Assuming the payments have been made timely. They wouldn't care as much if you pay it off in some other way if the amount is so much less and may not work as hard to get the better rate. Being that they are not going to prefit very much money since the balance will be so small. Hope that helps |
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spiritwalker
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1st check to see if there are penalities for paying that much on to it. If there isn't go ahead and try to deal 1st, if they won't deal use the money. |
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Ken
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This depends primarily on when you took out the auto loan. Auto loans, as mortgages, pay the interest up front. If you are more than halfway through your loan you have most likely paid off most of your interest. If you have paid most of the interest, what is the point in getting a reduction now?
If you are more than half way through the loan and have paid the interest, why not invest the money where you will earn more than you are paying. Call your lender and determine exactly what you are paying in interest per month at this point. See if you can get a better return elsewhere.
Good luck. |
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joy s
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I think you should shop around first and then go to your bank to see if they can match your rate. |
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Body by BBQ
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You will probably be able to negotiate a lower rate if you pay it down first, then refinance. It probably won't be too significant, half a percent maybe, but thats what I would do. |
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wcqa626
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You won't be able to get it refinance, because your balance is less than $7500, so just pay it off, and put the remaining balance on a 0% APR credit card. |
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pyelder
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First, make sure there are no pre-payment penalties with the current loan. If not, instead of negotiating with your current lender, find another lender that is willing to give you a better interest rate. You then have the option of refinancing the full remaining balance (if the car's value has not fallen below this amount), or only refinancing a portion of the balance and paying off the remainder. If the original loan is at an outrages interest rate, be careful, because there are probably many strings attached to refinancing or paying it off early.
Good luck |
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Lonely Spartan Soulja
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first thing you need to ask is how good is your credit.. interest rate is based on your credit score. you want to negotiate for better interest rate first because i am sure a better interest rate on 4500 is better than the reminder balance. |
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jamesPurple
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Take a look on other car loans and compare the rates. Then call your finance company and see what they're offering. |
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