Paying More On A Car Loan?

P

Patrick

New member
Hi, I am about to buy a new Honda Accord at the end of July. I plan on using Honda's 3.9% interest for 60 months financing (if it is still available). I went to the dealership and was quoted $425.93 a month for 60 months. I plan on paying at least $700-800 car payments for the first year. Also, I will have a bonus and income tax return that I plan to put towards the vehicle within the year. This should total an additional $2,000 to $4,000 off the car loan. I am trying to figure out two things. Will doing this lower my monthly payments? Also, will this reduce the amount of interest owed every month? Basically in a year I hope to have payments near $300 a month. Is this possible? Thanks in advance!
 
no, your payments will be your payments until the car is paid off;; unless you take out another loan;; the best you will do if you stayed on this path is pay it off early;; since a car depreciates in value, you may be better off waiting until you get that lump sum & using it as a down payment;; pay off the car with the new amount & saving the rest for maintenance, insurance & such;; but your interest & payments are the least you owe each month, that amount cannot be changed unless you take out a different loan;; your payment seems awfully high for a honda accord, even @ 3.9%
 
I think it just reduces your principle. You will be required to pay $425.93 a month, just for a shorter amount of time. For example.

Say you have an auto loan with $5000 remaining. You a required to pay $200 a month, but you pay $500, thus leaving you to pay $4500.

Please correct me if I'm wrong...
 
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