![]() ![]() ![]() “We are in favor of paying off auto loans early because it can help you cope with sudden life changes and afford you more freedom in the long run,” says Philip Reed, senior consumer advice editor. There’s an opportunity cost involved whenever you borrow money, and it’s a cost many people fail to consider. The real reason for getting out of a loan like this early is that you’ll be freeing up money in your budget every month. Not wowed by the figure? You don’t have to be. “The earlier you pay off or pay down these loans, the more you’ll save in interest payments.” You can figure out how much you’ll save on your particular loan by plugging your numbers into a calculator like the one at. This means the interest paid each month is based on the loan’s outstanding balance. Credit unions are a particularly good source of loans.)īut the majority of car loans are calculated using what’s called the simple interest method, says Mike Sante, managing editor of. If you had lousy credit or didn’t shop carefully for financing when you bought your car, refinancing is a good and simple move. They’re averaging 2.78% on a 48-month loan, 2.86% on a 60. (Note: Used car loans are - surprisingly - even a little cheaper than the new ones. You will save some, but most car loans have fairly low interest rates these days, averaging 2.98% for a 60-month new car note. Why? Not because you’re going to save a huge amount on interest. But if you haven’t done that kind of borrowing, and you have a comfortable cushion of emergency cash, you might consider throwing it toward your auto loan. There are a lot of options, and high-interest rate debt goes on top of the pile. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |