Quote:
Originally Posted by Boblobla
Will there be any sort of break on the interest? I don't really know how car loans work.
What is the advantage of paying 6500 in one lump sum rather than putting that money in a high interest savings account and slowly paying the loan off from there?
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no special benefits or rate reductions by paying the loan down early
however by making a single lump sum payment you will end up saving money on interest.
you mention possibly putting the funds into a high interest savings account and continuing making the regular payments, but that will only be beneficial if you earn more in interest than what the loan accumulates between payments