Today was a good day. I did a lump sum payment and as of 1PM this afternoon, my car is now all mine.

I managed to pay it all off a tad more than 2 years early. It feels so damn good not owing any money on this car!

Now all the money I save on car payments goes to my daughter's new private school tuition.

 

Not your's unless you have the pink-slip in hand. LOL

j/k, Congrats brotha.

 

Congrats.

 

Congrats on the purchase!

Related question - at what point does it make sense just to pay a lump sum if you (like me) have a simple interest loan?

 

congrats!

 

I made two lump-sum payments. One last October, and the other today. Each took a big chunk off of the principal.

What happens is this: assuming you have a loan, any money extra that is applied towards the principal "shortens" the loan. The other added benefit is that you no longer need to pay the interest on that money either.

Note: this does not alter the amount you pay each month for the car payment. Some banks are funny about this. I did this before with our other car and after paying a $4000 windfall to the auto loan, it said basically I did not need to make a car payment for 16 months. I needed to call them to have them apply the extra funds appropriately and my next payment then appeared at the correct time.

Essentially I just saved myself somewhere around $1500 in interest payments by paying the car off early.

 

My bank does this. I talked to my loan officer about it, and he said that whenever you make a payment, first the interest will be paid off, and then whatever is left goes towards principal. So assuming that you're monthly payments are $500, and $100 of that goes towards interested, if you make a $3000 payment, $100 will go towards interest and $2900 will go towards the principal. I don't have a monthly payment due for more than a year.

 

 

congrats man!!

I still have.. 57 payments left

 

Yeah, but that 06 GPW is sweet!