rent
Well-Known Member
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- Jul 18, 2021
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- 2021 JLUR XR
It really depends on what you had agreed to. Here are some strategy. The first two predicate on your having cash to pay off the entire balance.
- If you haven't agreed to making certain number of payments, and the contract has no pre-payment penalty (most don't). Just pay it off the next day.
- If the agreement with your dealer was to make, say 4 payments, but has no other stipulation, pay approximately [loan amount - (3 x monthly payment amount)] as your first payment the day after. Then make 3 more payments and be done with it.
- If the agreement has stipulation preventing you from paying down principal in the first 4 months, then you figure how much interest you would pay (roughly principal * rate / 12 * 4), and see how that compares with the $1000 "saving" you get from the dealer. If it's more, don't take the deal.
- If you haven't agreed to making certain number of payments, and the contract has no pre-payment penalty (most don't). Just pay it off the next day.
- If the agreement with your dealer was to make, say 4 payments, but has no other stipulation, pay approximately [loan amount - (3 x monthly payment amount)] as your first payment the day after. Then make 3 more payments and be done with it.
- If the agreement has stipulation preventing you from paying down principal in the first 4 months, then you figure how much interest you would pay (roughly principal * rate / 12 * 4), and see how that compares with the $1000 "saving" you get from the dealer. If it's more, don't take the deal.
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