how to beat the interest rate on a car loan and still pay quicker?

i have a fairly new car loan which is currently at ,936.50 with wachovia Bank. i bought the car on sep.2007. anyways, i did the math of my last payment that i sent, and i believe it went towards interest and not my principle of my car. please help me to understand how to beat the interest rate and pay off my car quicker?

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This entry was posted on Wednesday, December 16th, 2009 at 7:33 pm and is filed under car loan rate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “how to beat the interest rate on a car loan and still pay quicker?”

es on December 16th, 2009 at 7:33 pm

In order to pay it off faster, make extra payments and send a letter with those payments, telling the bank to apply the payment to your principal balance. Otherwise, they credit it toward the interest first.

When I was a realtor, I advised my clients to take a 30 year mortgage,and make 13 payments a year, to apply one payment to principal reduction. You’d be amazed at how much that brings down your mortgage balance–almost cuts it in half. Of course, it has less impact for a car, which is a shorter loan, but the same method works.
Good luck!

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