Overhaulin'

Car Payments Question!?

Ok. We have about 8 more months lseft on our three years loan and tomorrow we are wanting to pay off most of it, except a few hundred, we'll be paying about $2000.00 tomorrow. (Trust me, we can't scrape up enough to pay the entire thing off due to many other financial obligations we have) What I need to knwo is, how will they calculate our monthly payments with just a few hundred owing and 8 more months to go? Is the payment still going to be the same amount? Do we still have a monthly payment or just have to have it payed by the end of our term? I'm sure we'll have payments but just don't know how they'll go about calculating them. Thanks in advance. The interest rate on our car is a whopping 19% .... .. I know, sad! And our balance owing after tomorrow is $400.00. Will we still have 8 months to pay the rest? Thanks!

Public Comments

1. What is your interest rate? What is your remaining balance? I linked an online loan calculator below so plug in those numbers with 8 month term and there's your answer. So if you owe $300 and your rate is 10% then your payments would be about $38.92/month
2. the extra you send should go toward your principle. Your car payment will not change until the last month, so every month before writing a check I would call and ask for your payoff, if it is more than a normal payment, send a normal payment, if it is less, send only the amount due.
3. The additional amount will go towards the principle. Your monthly payment will not change until the last month. Be sure when you send in the check to put in the memo box that it is to be applied to the principle.