Auto Loan Payments
how car loan payments work is very
important. Below is some information that
will help you get a strong grasp on the
entire car loan payment process. **When buying a new or used car, the amount
of down payment
you leave on your vehicle will effect what
your car loan payments are and what kind of
interest rate you receive.
What makes up
a car loan payments?
An auto loan payment consists of three
parts, principal, interest and term. The
principal is the price of the car you are
auto loan interest rate is the
percentage of your loan that you pay Premier
Auto Financing for providing you with your
loan. Your rate will be determined by
what kind of credit
you have. The term of a loan is the amount of
time that you are agreeing upon to pay your
For example, if you purchase a car for
$10,000, and take out a 60 month car loan
with an interest rate of 6%, your monthly
payments would be $193. The total cost of
your loan would be $11,580. Use our
calculator to calculate different car
costs and interest rates to see what your
monthly payments and total loan costs would
be. There are some
disadvantages to taking out a 60 or 72 month
do I have to make payments?
Your finance payments are going to be
due once a month.
Will I save
money in interest if I make additional
payments in principal every month?
Let's say you
have a 60 month car loan that require
monthly payments of $375. You are interested
in saving money in interest so you start
making payments of $450/month. Are you going
to save money over the life of loan? No.
the extra payment towards your car loan does
not go towards the principal of the loan.
The only thing your additional payments will
do is take time off of your loan. You are
still going to pay the same amount in
principal, and in interest.
any benefit to paying more every month?
Let's say, over the span of two years,
you make extra payments that value to an
extra eight months worth of payments. You
now have the option of skipping eight months
worth of payments whenever you want. You can
do it now, or you can choose to have your
auto loan end eight months early. Premier
Auto Financing does not care how you make
your payments, or when, as long as the funds
you owe are received on time.
Also, if you
are looking to trade-in your car before your
loan expires, and you have been making
additional payments every month, you will
have less of a settlement to pay on your
loan than if you did not make more payments.
any penalties for paying off my car loan
When you finance an automobile with
Premier Auto Financing, there are no
What if my
payment is late?
If you are late for more than 60 days,
your credit is going to be reflective of
this. If you are late more than 120 days,
your car is going to be repossessed.
happens if I can no longer afford my car
If you can not make your auto finance
payments anymore, you can either sell your
car, or refinance. You can
learn more about what
your options are if making payments has
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