hokiemax

iTrader: (2)

It's only 2001 now. My payment ends in 2003. I was only a nice little college junior when I got my car, now I can't believe I'll be 26 when the payment on my car ends.
I wish I had gotten a used Maxima. If I did, the payment would have been ended by now..

WoodEar

nothing is unfair.
you want to drive a new car? you pay more.
you want shorter financing period? monthly payment is higher.

Stillnmax

Lifes a ***** like that isnt it...

bill99gxe

iTrader: (1)

making advance payments.....

Got a 60-month term on the 99 as well......I think our payment number is somewhere in the late 30s instead of number 18 like it would be if we just made payments....

Looking to have her paid off this time next year.....the car, not the Wife.



[Edited by bill99gxe on 01-03-2001 at 10:39 AM]

CoOlKidS1979

I just got a 5 year loan on my 97 se 3 months ago, over 5 years I have to pay 8,000 in interest, but Im not gonna get screwed like that, I ve paid as much as can possibly pay and already have 50% of the loan paid off. 3 more months and I plan to have this car paid off, and save myself thousands in interest. To bad for for my friends one of whom has a 7 year loan on a used 97 se for 350 per month, and another friend who has a 6 year loan on a used 97 as well for 425 per month. My payments where only 200 per month to begin with because I put alot down, but I got screwed on interest rates because I ****ed up my credit when I was a teenager, it is a high as a credit card 18.5% wich is why I am paying this loan off in 6 months instead of 5 years.

AndyXXL

I got a 2 year loan on my used 97 max last summer. The monthly payment was supposed to be $420 or so, but I'm paying $1500.00 a month. Will finish paying the loan off in 2 months.

ohboiya

iTrader: (3)

I'm only paying 500 interest over the entire term! Wait until the special financing incentives year the calendar year-end the next time u buy a car ... u get great incentive pricing plus great financing ...

breaux124

iTrader: (1)

I got a three year loan, but I'm paying more than the minimum payment every month. They automatically take the minimum out of my account every two weeks and I mail them a check every month for even more.
Have them take the money out every two weeks (some banks do it) because in the end you pay less interest because half a payment every two weeks accrues less interest then a full payment every month, but you don't see a difference.

You could always lease every three years, but then you don't own the car, but you'll always have a new car.

WoodEar

just thought i would tell this, to all those who are in rush to payoff their max loan.
if you know you can pay more than the montly payment, then take a shorter loan with higher monthly payment, it's better this way than paying extra money monthly.
because for a loan, the interest/principle is not linear to time, in another words, in the beginning, they take more money from your payment towards interests. so your extra payment isn't being used the most efficient way that you think it would.

breaux124

iTrader: (1)

That's a good idea, but I picked a slightly longer loan to make sure that I could make the payment every month and that if I need the money in an emergency (like...oh my GOD I need new Rims!) I would have it available.
I'd rather have a loan a little longer than miss a payment and get slammed on penalty fees.

bill99gxe

iTrader: (1)

Wife 2.0 bought the 99 Max when we were engaged, and only wanted the car in her name since this was her first car. Building credit, etc, was important at the time. With just her salary, we only felt comfortable with the 5-year note.....

Every financial case is different, and for those who are planning on buying a Max in the near future, negotiate the financing as well as the car purchase and put all you can up front....

fc95se

Can this help improve poor credit?

Héctor

While this is true it's also good to try this: Note (as a standard letter or on the payment cupon) that you want X amount to go the regular payment and you want X amount to go to the principal. That way your extra money is not going into the the interest, but instead paying on the principal which matters most.

Then again I am sure you are aware of this also... =)

<b>Héctor</b>

Chris91SE

iTrader: (1)

the best way to help poor credit is to make just the monthly payments over whatever period you have say 4 years...this will show that you can handle making payments on time for the extended period..."on time" is the key

WoodEar

it doesn't matter.
let's say you are able to specify you want your money go to principle(who wouldn't, right?), so they just recalculate interest/priciple balance, and your monthly payment still remains the same anyway, so you will be paying it off faster no doubt, but you will still be paying more overall compared to if you picked a shorter loan term.
believe me, i have that all figured out

Slowpoke

Okay I'm a little slow today, can you explain what you mean by this?

Say you have a $10,000 loan with a 12% APR, compounded monthly. Monthly payments for a 5-year loan is roughly $200, and for a 3-year, $300. You opt for a 5-year loan.

After the first month, you will owe $100 in interest, regardless of the length of your loan. Correct?

Now say that even though you signed up for a 5-year loan you decide to make a $300 payment. The first $100 will go toward interest, the remaining $200 toward your principal. Your balance is now $9,800. The following month, interest payment is $98, regardless of the length of the loan. Right?.

Provided that the bank does not assess any penalties for overpayment, if you continue to make monthly payments of $300, is that not the same as paying a 3-year loan according to schedule?

It's true that they take more money in the beginning from your payment towards interest. But as long as interest is computed based on your actual balance, how can you lose out by paying off your loan early? The only situation I can see where you would lose out is that if your interest payments over the life of the loan are computed beforehand based on the term of your loan and are not recomputed each month to reflect the new balance. In other words, the second month, you would be paying interest based on a $9,900 balance, even though actual balance is $9,800.

nismomaxse97

iTrader: (4)

Okay, basically if you pay 100 dollars more than your minimum payment of 200. The 100 will come off the back end of the loan. So if the second month comes around and you lay down 300 again another 100 will come off of your last payment erasing your 60th month. Your pay off day basically approaches from the other side.

Slowpoke

In that case, you are correct, there is absolutely no advantage to paying off your loans early, as the bank always will get the same amount of interest as you originally signed up for no matter how quickly you end up paying it off.

However, I just double-checked the terms of my loan, and my finance charges are computed daily based on my actual balance. When I make a payment, it first goes to finance charges, then to scheduled unpaid balance, then to late fees, and the remainder goes to unpaid balance. Therefore, if I pay an extra $100 this month, it doesn't come off my last payment, it comes off my balance. Since my balance goes down, next month's interest payment will go down accordingly.

So my question still stands. Under the terms of my loan, if I have a 5-year loan but continue to make payments as if it were a 3-year loan, how do I lose out over getting a 3-year loan to begin with? The money that goes toward interest and the money that goes toward my balance for each of the 36 months would be exactly the same in each case, would it not?

BigHops99se

I have a five year loan on my 99se and it was just the best situation for me. I'm still a college student but I wanted my max for two years and I finally got it but the only way to afford it was to go with the 5 year loan. I pay a little under 400 a month but it is worth it to me to drive the car that I love.

Besides it will be paid off the year I turn 25 and then it is sports car time!!!!

WoodEar

never mind, it's very hard to explain.
if you are really interested, use the microsoft money program, make a 5 yr loan, then pay on scheduel no more no less in 5 yrs. then pay more than the monthly payment and pay it off in 3 yrs. then try it with a 3 yrs term and finish on schedule.
then see the amount of total payment in 3 cases, then you will see what's up. btw you aren't getting ripped off in case2 or anything, it just ends up paying a lil more than case3. that's it.

nismomaxse97

iTrader: (4)

Depending on your contract the principle and interest can vary I guess. What I meant was that the extra 100 dollars comes off the end like a mortgage, or comes off of the principle or as you stated balance. Same difference.

For every month you knock out before you get to it. That is how much interest you will not pay in the end. I do not mean the whole payment counts as interest as you know by the end of the loan the principle is much higher than interest and vice versa in the beginning.

To try and answer the question. If your APR is fixed at what ever percentage. It does not matter if your contract is 3 or 5 years. You will pay for 3 years of interest and that is it. It should be the same no matter what happens.
It all will come out the same.

Slowpoke

I don't have Microsoft Money, but I have quicken, which does the same thing. I did as you said, I made 3 loans. Each for $20,000, with 10% APR, compounded daily, payments to be made on the first of every month.

Case 1:
5 year loan, paid according to schedule. Monthly payment was $425.34 with final payment of $425.25. Paid it off in exactly 60 months, paying $5520.31 in interest. Total payment was $25520.31.

Case 2:
5 year loan, but try to pay it off in 3 years. This requires a monthly payment of $645.72, with final payment of $645.85. Paid it off in exactly 36 months, paying $3246.05 in interest. Total payments $23246.05.

Case 3:
3 year loan, paid according to schedule. Monthly payment $645.72, with final payment of $645.85. Total payments are $23246.05.

To summarize, total payments for the 3 cases are,
case 1: $25520.31
case 2: $23246.05
case 3: $23246.05

Case 2 and case 3 end up being the same, and why wouldn't it be, you are paying exactly the same amounts each month, and each month you have the same remaining balance for both loans, and hence the interest you will pay the following month, are exactly the same.

WoodEar

what do you mean by, "this requires a monthly $645.72"? you wouldn't know what's the new monthly payment unless you change it to a new 3 years loan, in which case that's exactly case 3. that's why you are getting same results.
what you should do is with case 2 is, use the case 1, the monthly $425 one, but you pay more than $425 per month, but doesn't have to be euqal every month. you can input $800 for one month and $430 for next, as long as you finish in 36 months.

anyway, don't kill yourself over it. if you believe you are right, then you are right and i am wrong. it's the same, people should just take a long long loan term and try to pay it off faster. ok?

Slowpoke

Okay, I understand what you were saying now. I wasn't trying to prove you wrong, I was just trying to make sure I wasn't getting screwed.