Our auto loan contract states "You may prepay all or part of the unpaid part of the Amount Financed at any time without penalty."
The simple interest is calculated daily. So the fewer days I have the loan, the less interest. The number of payments on the loan is 60, which means 1825 total days.
We financed the new car based on the fact that an extra $1000 would come off the price car.
I went online, set up the account and prepaid $21K , since we were going to pay cash anyway. The finance person at the dealership said Hyundai finance wants us to pay in 3 installments. That's the only criteria for the loan. The interest accrued was $17.00 when I paid the $21K. Bought the car Oct. 22, paid the $21K Oct. 26.
Nov. 1 or so, I will pay an additional $500, then additional $500, then pay off the loan (total loan $22,400). The accrued interest should be less than $100. Am I figuring this correctly.
Does the "due date" have anything to do with how much or when I pay?
It's been years since we took out a loan. Paid cash for our house.
The simple interest is calculated daily. So the fewer days I have the loan, the less interest. The number of payments on the loan is 60, which means 1825 total days.
We financed the new car based on the fact that an extra $1000 would come off the price car.
I went online, set up the account and prepaid $21K , since we were going to pay cash anyway. The finance person at the dealership said Hyundai finance wants us to pay in 3 installments. That's the only criteria for the loan. The interest accrued was $17.00 when I paid the $21K. Bought the car Oct. 22, paid the $21K Oct. 26.
Nov. 1 or so, I will pay an additional $500, then additional $500, then pay off the loan (total loan $22,400). The accrued interest should be less than $100. Am I figuring this correctly.
Does the "due date" have anything to do with how much or when I pay?
It's been years since we took out a loan. Paid cash for our house.