Will the auto finance company apply more money towards your principle if you request it?

Each loan comes with an amorization schedule... mortgages, car loans, etc. It's basically a schedule that tells you what day your payment is due and how much money is due. As you pay your loan back, a certain percentage is applied towards the interest that accrues daily (stated as per diem on your statement) and your principal balance (how much you paid for JUST THE CAR). As you make each payment more of your money will be applied towards the princal balance. This is why it is important to pay as much as possible towards your loan because you are spending thousands of dollars just in interest. If you want to apply more towards your principal payment, your only option is to include your monthly payment plus however much extra money you have to go towards your loan in a separate check.

No.

The payment you make is based upon the amortization of the loan. All loansd begin with the largest interest payment the first month. Each month, as your balance decreases, the amount applie to interest is reduced, until the final payment, when the interest payment is the lowest.

You may make additional payments that are applied to the principle. this will result in your loan being repaid quicker.

To do this, write a SEPARATE check to the financer. In the memo box write the account number and the statement:

TO BE APPLIED TO THE PRINCIPLE BALANCE

The minimum payment due will always be applied to principal and interest based on a set amortization schedule they should be able to provide you. As it turns out most car and home loans are setup in a way that you pay a lot of the interest up front (for the first year or so).

If you make a payment over the minimum amount, the additional amount will be applied directly to principal!

Here is a simple calculator that should help you see the effect of paying additional principal each month, it is designed for homes but should be roughly the same for a car: http://www.locallender.info/consumer-banking/mortg...

Only if you pay more than the required payment.

For example: If your payment is $250 per month and you send $300, the extra $50 can be applied towards principal.

No - The only way to get more towards your principle is to pay more on the note each month than what is required.

OK SAY YOUR LOAN IS 393.40 AND YOU MAKE ADDITIONAL 50.00 PAYMENT BEFORE LOAN DUE DATE, CAN'T THAT GO TOWARDS THE PRINCIPLE IF REQUESTED?