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Discussion Starter #21
That doesn't seem right. My understanding is that a vehicle loan has to abide by certain regulations which allows you to pay payments to principle so long as you have made on time your last required monthly payment.

That said, nothing like not having a car payment. It is one of the most freeing things on earth.
I think maybe if I call and state make sure it goes into principal they'd do it but they add the extra step to hope the lazy pay each payment to Maximize the interest. I didn't even get my copy of the duplicate title, which costs $20 from the dmv. I'm pretty sure it depends on the financer but it's just another damn step in the refinance process.

The duplicate will come next week and I can finalize my refinance with my new bank. Pay off the loan in about 10 months depending on how good I am with my money, maybe less if I get bonuses at the new job.
 

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i wouldn't rush out to get a new car and get rid of a nice vehicle. i was in your shoes about 3 years ago when i bought my grand prix. i financed mine for 15 and now i'm finally down to the last to grand. i always had a POS s10 to drive around back and for to work and sold that when i got my dad's old tahoe. the tahoe has been a giant money pit and now has a rebuilt engine(cost me over 2 grand) and probably more headaches to come. my plan next is to save while owning two decent vehicles that i can afford to throw a little cash at from time to time. a second beater vehicle for 3k wouldn't be a bad idea. you'll probably like your car a little more if you're not driving it every single day.
 

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Ummm.... what?

Not sure this is a legal practice, is it??? Simply applying overpayment to future payments? Maybe it's a state-to-state thing, but I am thinking that falls under predatory lending laws.
Most amortized loans require specific instructions be given in writing with regards to principal only payments. In addition the current month's payment must be satisfied in order for a principal only payment to be processed.

As far as applying over payment to future payments, it's not "illegal" per say. Pretty much any lender will do it unless instructions are given.


That doesn't seem right. My understanding is that a vehicle loan has to abide by certain regulations which allows you to pay payments to principle so long as you have made on time your last required monthly payment.

That said, nothing like not having a car payment. It is one of the most freeing things on earth.
Exactly.
 

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So here's an update. Getting paid out for unused sick, personal and vacation time. That with some out of pocket funds and maybe selling my current system will get the car down to 10k before july. Which will lower my payment to a more affordable payment. I'm also refinancing with a really good local bank (getting away from T.D bank) my credit score is pretty killer so I think i'll get a lower rate than my current 4.5%. I make all these payments towards principal and maybe by tax refund season I can slay this loan.

I start a new job which I will be making a little less starting for now but will hopefully rank up quicker than average newcomers. If I pay off my car I might sell it and upgrade to another car if I can manage to make sure the loan is less than 10k. Maybe I'll smack some sense into myself way before then and just be happy with a paid off car with plenty of life left in it. Thanks everyone for your advice.
Perhaps you just gave yourself the best advice.
 
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