Car Payments Qusetions

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YouKnowWhoIBee

my avatar is better.
I am new to car loans, never had one in my life till november. I started paying more towards the loan every month on the Jeep, and watched the payments go from 268 to about 240. After 3 months, i presume i paid about 1000 more then the minimum. So about 20 bucks per 100 i feel is a good "estimate". Right now my payment on the Fusion is 469 a month. If i were to call my bank, and make a 4,000 dollar payment towards principle... would that decrese my monthly payment? Or will my payment stay the same and take off of the duration of months on my loan. So instead of 60 months... maybe 57?

The reason why i say this, is because my tax return comes in soon, and i am getting back right around 2k for my jeep's extended warrenty. I will have 4,000 dollars to play with. So should i pay off 50% of my revolving debt, or put it towards the car?


Cliff Notes
*will payin gmore towards car loan decrease payments? or duration of loan?
*should i take 4k and put it towards my car or credit cards?


*edit - myspacebar at work sucks :( sorry in advance.
 
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changing payments is a rare thing. I've never seen it before.

if you do a lump sum, you will simply end early, not lower your payment.
you will need to re-finance to do that.

as for the CC debt... chances are its much higher interst than the car loan. Put it towards that.
 
pissedoffsol said:
changing payments is a rare thing. I've never seen it before.

if you do a lump sum, you will simply end early, not lower your payment.
you will need to re-finance to do that.

as for the CC debt... chances are its much higher interst than the car loan. Put it towards that.
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+1
 
Put $1000 in an emergency fund. List your debts from smallest to largest, and pay them down as far as it will go. Get off of the credit companie's nipple, its feeding you poison.
 
oh i read that... and signed up for that class. You got me hooked. I spent 3 hours on excell last night making my budget :) And 1k emergency fund is a good idea. I could take out 2 out of my 4 credit cards still with the rest of that money. I use one credit card with 0% interest for my car insurance. So that will be last. My car loan is the second to lowest percentage rate, besides my school loan. So i am about to say bye byt to alot of debt next month :) Hopefully by summer i hope to have about 10k chopped away.
 
pissedoffsol said:
changing payments is a rare thing. I've never seen it before.

if you do a lump sum, you will simply end early, not lower your payment.
you will need to re-finance to do that.

as for the CC debt... chances are its much higher interst than the car loan. Put it towards that.
Click to expand...
+1
 
the BEST thing to do, would be to adjust your withholdings so you aren't giving the government an interest free loan for 12 months.

If you get back more than 1000 combined (state and fed), or owe more than 1000 combined (state and fed), you should re-work your W2's to claim more or less.
 
On car loans the payments normally won't decrease because the interest decreases. Most likely, you'll end up simply paying it off faster depending on how much extra you put in. My car payment is 246.20 and I just pay 250.00, so I put an extra $3.80 a month into the loan, which goes towards the interest. After roughly 65 months I'll have made an extra months payment one month ahead of time, basically paying it off one month early.
 
err... yeah typo. lol I was talking to BDN on the phone when I typed that.
 
YouKnowWhoIBee said:
I spent 3 hours on excell last night making my budget :) And 1k emergency fund is a good idea. I could take out 2 out of my 4 credit cards still with the rest of that money.

you might want to look into a low interest balance tranfer credit card. take the 3 cards you have interest on and transfer them. and put your 1k emergency fund and take the 3k and put it on the new low interest card. i had did that not only did it consolidate payments it helped my credit :)
Click to expand...
 
pissedoffsol said:
If you get back more than 1000 combined (state and fed), or owe more than 1000 combined (state and fed), you should re-work your W2's to claim more or less.
Click to expand...
Nah... ~600 from federal and ~100 from state. But with the little over 2k from my jeep, overpayment from the bank and tax returns combined equal around 3300. I was going to put 700 towards the car so about an even 4k.

I did some more budget working, and i am gonna payoff 2 of my cards and start that emergency fund with 1k and then work on my non best buy card. Best buy has no interest for a crap load of time left for my tv. So i am not too worried about paying that one off so soon. The card i am going to work at is my car insurance credit card. I pay insurance at a 6 month price on a 0% card and get the lowest payment possible, and pay it throughout the duration of the 6 months. So instead of ~200 a month, it is 175ish and I just put that amount on the card.
 
Pay off the cards with no interest, before interest kicks in. Free money is free money until they charge you.



I just dumped some 400 on a CC payment to bring it down into 30% of the max. Guess what the company does? Raises my limit by 5k.
 
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