I was wondering if anyone has ever extended their loan term payments? I realize that this probably isnt the best financial move as you will end up paying additional interest and driving an "old" car and still paying for it, but has anyone gotten sick of high monthly payments and instead of dumping a car they really like, extended the loan term?? I aready have a decent APR used @ 6.8%, but got 3 more years of payments of more than $500. Was thinking of throwing bonuses and tax returns at the loan through the winter and then extending the term in the spring and refinancing like 14K over another 60 Mos. Payments would drop like 300 per month but in the end I'd be driving a 10 year old Z with about 100k miles. Hmmm. I think the interest would be like another $1,800 over the term. I can afford the payment, just getting sick of the payment. Anyone ever do it?
I was debating just buying an older Xterra and dumping the Z and my beater corolla, but then i wouldn't have a Z!!!

 

Thought about it but I'd rather throw cash at it now and pay it off. Getting a lower payment is just a temporary solution. It doesn't help you down the road.

You'll be driving an old car thinking about buying a new one and at the same time wishing you'd had a few years without a car payment.

 

yeah pay it off. i regret my 350z deal but i gave in and did it. i wont discuss my payments but i have made crazier things happen. i learned a lesson about payments through experience. lets just say if i make it through with this Z, i can probably pay off my next car in 12-24 months haha! that is what i have learned it probably wont make sense to you though. i have a friend who is willing to buy my car in full and i can start over with another Z or something else.

 

try this website out! it helped me out

http://www.auto-loan-calculator.bz/

 

Can you just pay off the loan early. My loan people said they would penalize me for paying off my car early. After all, they would lose out on all the pregotiated interest they were planning on getting.

 

Visit the lender. Negotiate the terms of the loan.

 

Did you negotiate the terms of the loan ? How did it work out?

 

Nice follow up Thanks for the input everyone. I haven't done anything yet. I know it would be a bad move in the long run to extend the loan, but could free up some cash now for other things.

 

Standard auto loans are daily simple interest. They probably just told you that so you wouldn't pay if off sooner so they could make more money in interest. Look in your loan documents, there will be a clause about repaying it. Most likely it says that you can and there won't be any penalty.