Want more tips of how to get out of your car or How to buy a car and not hate life? Watch this Car Buying/Selling Series...ru-vid.com/group/PLdKOWk-Vo99x2A-yIp4I17utR-MwLAykF
You are a godsend for sharing this information...im in my mid 20s and only starting my road to financial freedom and you made it so easy to digest! God bless and stay safe during this pandemic
I just created the amortization schedule for the car I’m focused on paying off now and I am TRULY amazed! I can actually see how much money I’m saving as well as the number of years cut off of a 60 month loan. THANK YOU!!
Loved this video !! I’m in the car loan work area at my job and the verbiage you used will help explain better to my customers to help them out thank you !!
Is it smarter to do this in increments? Or if I have 10K to spare, can I put it all towards the principal without worry? Also, my loan says I have a daily interest amount of $2 if i pay off my loan early. Can you explain that? Thank you!
Could you do a video on how to do this with a printed off amortization chart where you highlight what you save in interest when you put extra towards principal only
I did just that in this video ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-rhkc5pvQ_iE.html Check it out and comment to let me know what you think. Thanks for watching.
So so so informative!!! I have a question, if you come into a lump sum of money can you just make one large payment to principal? For example 7,000 paid to principal and the rest just paying my car note or should you keep applying money to principal?
Yes you can and lump sum payments save you the most money. Check with your lender for their process before sending a principal payment and always double check that it was applied correctly.
Thank you for opening my eyes on saving money! I am financing a Toyota and the only way to make principal only payments is to mail them a check. Do you think they would actually receive that check if I mail it? Im worried about sending extra money through the mail like that. Who knows if it would get lost.
Yes a check in the mail is fine. Old school for sure but it still works. If it is lost you can simply cancel the check plus once it deposited you will have digital record of the payment with your bank. Just be sure to write you loan account number on the check and put principal payment on the memo line. It do show their true colors that they are making a payment so difficult. It could easily be a checkbox on their website.
I am 2 months from paying off my car. I'm shocked to discover that over the life of the loan, I paid an additional $900 by paying more per month. I cannot figure out how nothing has been shaved off of my last 2 months. only $10, It's taken me many hours trying to figure out what they did with that money. I was late some months but not by more than 30 days so that accounts for some of it -- interest compounded daily over every day late- added all of that up to $300, still, there is $600 unaccounted for. It's so stressful to try and figure this out now, in the end, when I should be celebrating. Why is daily interest compounded from day paid to the day paid, so that when I pay early, it seems I am penalized ? I'm just not good with this stuff. not enough advil.
I would suggest anyone thinking about financing a vehicle run the number through a calculator to see how much in interest they will pay over the life of the loan. The trick is to convert the APR in a daily rate and watchout for fees. What you described is why I made the video about principal payments and suggested any extra money is send a principal payment. It's easier to track and they can't hide. Two months and your free, Great job!
What about the companies that don’t do principal only payment? Every time I’ve tried to make principal only, I’ve been told they don’t do those and I will still pay interest on the payment 🧐
B.S. They just don't want to do it because they don't make as much money. Check your loan documents to see if there is anything preventing principal payments. if not, demand they accept your principal payment. OR JUST refinance with a different lender. A good lender will make this process as simple as checking box when making a online payment. When it comes to banks we sometimes forget that we are the customer and there job is to provide us a service.
Hey Diamond for some reason my schedule is not adding up to my loan schedule on the app. It shows a lot less in the amortization for this month and that's not where I'm at. Not sure what I'm doing wrong... I think I'm way off on my payoff date which means I'm no where near paying off
Make sure you start the correct start date as that will affect your schedule. Also, it may not be exact down to the penny because if where they round your daily interest rate but it should be close enough to give you an idea. Also if you've made any extra or principal payments you will have to manually find your place on the schedule by looking at the close amount to your current balance. Let me know if you need any other help. Thanks for supporting the channel.
@@DiamondEdwards thank you. I honestly think I'm so behind on schedule because of payments that got pushed back in the past and it was repossessed but I literally got it right back. I still find it strange because they make you pay whatever pushed in the rear. Im caught up on the car and I just started making principal payments in addition. At this point it looks I'm going to need to pay a extra 1000 a month to get out the loan as quickly as possible. I hope I'm wrong.
