Overhaulin'

Hey can you pay off a new loan or car off right away?

Is it possible for to pay off a new car when you get it at the dealership, if you have the money? Now also can you do that with a loan as well. Becuase I have recieved a loan for $10,000 and I was thinking about paying it all off in full. I have the money to do this. now what's a personal and cashiers check all about?

Public Comments

1. Yes.
2. Yes. The loan company will be able to tell you the payoff amount for specific dates. It is common for other types of loans have prepayment penalties tacked on to the principal amount, but I don't think that this is too common for new car loans.
3. A cashiers check or personal check would be the best way.
4. Yes- that's called credit arbitrage. If you're paying a high interest rate on your car and you just got a loan for a lower interest- you can pay off the car/other loan, and keep the difference in interest. Well done! You can read more about that here: http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2Fgp%2Fproduct%2F1600200400&tag=thestateofart-20&linkCode=ur2&camp=1789&creative=9325
5. Well, you can, but I was told for any major purchase (if you can get a loan at a low enough interest rate) it's better for you to get a high-interest savings account and keep your money in there while allowing your loan to be paid in automatic payments from that account. This way, your lump sum gains interest at a higher rate than your loan gains interest and you end up making money on the deal.