Auto loan financing; prepayment of principal ? | Awesome Faces!

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Question by Joe: Auto loan financing; prepayment of principal ?
OK I need to finance a car or van , I just got discharged from my Bankruptcy , I?am on Unemployment .I have $ 500.00 as a down payment , Iam looking for a vehicle price between $ 3000.00 and $ 4000.00.

On the ?loan calculators? with 25% interest and depending on the vehicle price ($ 3000-$ 4000) . All the calculations come to under $ 100.00 a month , then add insurance for say $ 60.00.

What and where on the contract should I look for options with paying the car off , that are best for me.

I want to be able to pay the $ 100.00 a month payment as stated above , then when I find a job , I want to pay it off quicker.I do not want the extra payments I send in to just go towards the interest.

Or say if I continue to pay $ 100.00 a month , then just save extra cash to do a payoff.What would I have to question and/or lookout for on the contract.Say if I have the payoff money , then could they say like I owe more because of the interest?

Can someone break it down for me in laymans terms , so I do not get ripped off.I?am trying to rebuild my credit not go back into debt.

And I NEED to get a car in order to get a job , all the jobs that I?am qualified for are in the suburbs.And I need a car to get out there.

Thanks

Best answer:

Answer by Carol
No, if you pay that car off early then you save interest on it. It is calculated on a daily basis. So the sooner you pay it off the better off you are! Get it paid and save that amount that they are charging you to punish you for bankruptcy and that is what they do!
Now you will not get a refund because you are paying it off because all is calculated in the payments, but you do save a ton when you pay it off because the calculations are monthly so the sooner, more money for you and your credit looks better as well. In other words you save having to pay all the interest that is with the total loan amount.

So pay it as soon as you can.

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