When I was looking at cars, I knew that if things went reasonably well ( i.e.no major set backs), that I would either pay off the car in a short time, or pay off the truck loan (bought the truck April 2018 and still owed about as much as the budget I had in mind for a car).
When I bought the Focus, part of the deal for getting such a low price, was getting a $1,000 discount for using Ford Cred*t to finance. You had to keep the loan at least 3 months, then could refinance (which I'll bet a lot of people don't think to later). See, that financial option runs about twice the rate of what other options cost. With my excellent credit, the lowest rate I could get was 6.7%!!!! Almost any bank or credit union would give me 3.9% at the time. My truck loan, even though used rates are higher than new rates, is at 3.3% - so I knew I would be paying off the car first.
Anyway, I took their finance option each payment that I made was well over what was required. I paid the car off in June, paying them a total of right around $250 in interest - so in all, I got a $750 discount. I got the title within a week of the final payment and then about 10 days ago I got a piece of mail from them. Hu? What could they want?
Apparently I overpaid by $1.03. Almost enough for a cup of coffee :)
You make a habit of over-paying on loans - lol. As I recall, you got a tidy sum after over-paying on a mortgage about 20 years ago. Of course, that time, it was the mortgage holder's fault for having miscalculated the interest due!
Good show!
Posted by: Cop Car | July 21, 2019 at 10:20 AM
Well at that point, I just had the schedule to go by, and since I just had no idea what I had left, I just kept paying until I knew I had hit the total $$ on the schedule. Back then I wasn't on the net (few were), so I didn't have access to a calculator. The onus was on the lender to figure it out. Fortunately I was dealing with an honest lender :)
Posted by: bogie | July 28, 2019 at 05:34 AM
If you didn't really track/compute your excess payment effects, you came amazingly close. Kudos!
You keep telling me that you are not an engineer; but, you keep showing the skills of one. Being able to "ballpark" calculations is another one of those.
Posted by: Cop Car | July 28, 2019 at 10:25 AM