What happens if I make more than one payment per month on my car from Ford?
I want to ferociously pay my car loan off as soon as possible. My car payment from Ford is due every 15 of every month, but I was wondering if I could make more than one payment per month. Lets say if I make 6 payments in one month of 100 dollars on top of the monthly payment due on the 15 of every month, is that allowed by ford, or do they charge a fee for making extra payments on their car loans?
- AlCaponeLv 73 years ago
Here's how it works:
You make your normal payment each month, but add extra money to be paid toward the principal. This reduces your balance faster such that it shortens your loan and eliminates payments at the end. It also reduces the total amount of interest you''l pay.
You cannot make "extra payments" in the sense of making more payments than your single payment each month. You cannot skip payments. You might be required to pay an early payoff fee, depending on your bank or loan company and how early you pay it off. The money you use to add extra to each monthly payment shouldn't be money you could better use for other purposes -- paying off high-interest credit card debt.
- Anonymous3 years ago
With most loans if they are paid off early there will be a reduction in the interest paid on the loan so less will be paid in the end. Ask the finance people about it.
- David 14Lv 73 years ago
Of course its allowed. Why wouldn't it be?
- PoppyLv 73 years ago
Extra money sent in goes strait to the principal owed on the loan, there is no penalty for extra payments. It is a very smart move, you’ll be payed of in no time and will have spent a lot less on the purchase as the interest is on the balance owed. The extra money means less owed, so less interest.
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- JetDocLv 73 years ago
Making a whole bunch of random little payments isn't going to be any different than just paying all the extra money on your scheduled payment date. In fact, if you make TOO many deposits, the bank MAY decide to charge an extra fee for processing those multiple extra payments. If you want to pay your car off early, just add the extra cash on to your normal monthly payment
- Anonymous3 years ago
Just save it all up until the 15th and pay it in one lump.
- Phil MLv 73 years ago
Some loans have early payoff fees. There is only one way to know if yours does, and that is to talk to your lender.
- Pearl LLv 73 years ago
you'll just get done paying for it sooner
- daniel gLv 73 years ago
You get credited for what you pay, unless your interest is fixed, you can cut that down a lot doubling up payments.
- G. WhilikersLv 73 years ago
Couldn't you simply write a larger check every month? The one large payment will cover the interest, the usual principal payment, and extra principal payment. Trickling the extra payments out like that won't do anything interesting for you unless you have no will power and would be tempted to spend the money instead.