#Chase auto loan finance calculator plus#

If you were in an accident and totaled the car while you're upside down on your loan, you’d have to pay back the lender the worth of the vehicle plus the negative equity. This is what’s known as being “upside-down” on a car loan.īeing upside-down on your loan is a potentially risky situation. It’s not uncommon for someone to owe more on a car than it’s worth. You could even save the extra cash for a rainy day.

#Chase auto loan finance calculator free#

What happens if you pay off your car loan early? You could potentially free up money in your monthly budget, meaning you have more room to spend on other debts or necessities. A simple interest rate is calculated monthly based on what you still owe, meaning if you pay off your loan earlier, you won’t have to pay the interest that would have accrued over the remainder of your loan.Ī precomputed rate, on the other hand, is determined at the beginning of your contract and remains a fixed amount for the entirety of your loan, so it’s likely you’d still be on the hook for that amount whether you paid the loan off early or not. You can use an online calculator to get estimated rates and monthly payments on financing. It’s important to note that this only applies if you are paying a simple and not precomputed interest rate. The most obvious reason you might want to consider paying off a loan early is that it saves you money on the amount of interest you pay. If you’re wondering whether you should pay off your car loan early, you may have several reasons to say yes. What are the advantages of paying off a car loan early? By paying half of your monthly payment every two weeks, you end up making a total of 26 payments per year, which is equivalent to making 13 monthly payments in one year rather than 12. Contact your lender to make sure this is an option and for their assistance in setting it up. Submitting payments every two weeks on your vehicle instead of monthly can also help you pay off the loan a little earlier. This can take longer than making one lump sum, but it could be a good choice if you only have a bit of extra income a month to spare for paying off the car loan. For example, if your car payment is currently $275 per month, you can round it up to $300 and pay an extra $25 per month. Pay a little extra each monthĪnother option is to pay a little bit extra every month by rounding up the payments to a higher number, say to the nearest $100. If you’re interested in this option, you can find out the remaining cost of your loan as well as any additional fees that may come with paying early by contacting your lender. The first option is to pay the remaining balance of the loan at one time in one lump-sum payment.

It is possible to pay off your car loan early but check your financing documents first to see if there is a penalty for pre-paying your loan.

#Chase auto loan finance calculator professional#

Like all major financial decisions, you may want to discuss with a financial professional and weigh the pros and cons of paying off a car loan early before jumping in. Sometimes it might make sense, and other times there are better ways to spend or save any extra money.

Paying off a car loan early can be a great idea.