I know the typical auto loan has anywhere from like a 2.99% interest rate to a 19%.. but for a used car, one would usually go about and find a auto loan from a credit union cause unless you're buying from a dealership, you need cash ready to pay the person. The typical auto loan is ...you get a loan and agree to the terms or whatever and keep paying monthly for the agreed months.

I was wondering, is there any different kind of loan? Im looking for one where i can borrow about 6500 for a car, or 6000 or somewhere around there, and then pay it all off the next 1-2 months. The reason for this is, im in need of a car and the insurance is going through the process of getting me my money. But, they're slow, so it usually takes weeks for any letters to come, and for my claim to go thru, its gonna take about 1-2 months, maybe more, maybe less. Juss wanted to know if there are those "fast payback" type loans. I can deal with a additional 400-500 fee for loan fees or whatever, but im trying to avoid the monthly plan and pay if all off. Thanks

 

Just make sure there are no prepayment penalties with the loan you select. So long as that is the case, you may pay off even an 84-month loan as soon as you wish without any negative consequence.

 

oh okay. Thanks But would i have to pay the interest for every single month. Let's say i borrow at 7% and i borrow 7k. If i pay it back within a singe month or two, do i still have to calculate all of the money WITH the interest and then pay, or juss pay a simple 7% of the 7k and get if over with.

 

You would just pay the interest on the time you had it. If it's 2 months, then you'd pay about $80 interest on a $7000 loan at 7%. When you're ready to pay in full, call your lender and ask for the payoff amount. BTW, there shouldn't be any extra fees if you're going through a credit union.

 

Is there anyway to get a loan for a vehicle without having full coverage insurance on the vehicle? If not, is there any other type of loan aquirable around the amount of 10 grand?

 

I friend of mine just put that kind of money on his credit card when he bought a used car. Since you're going to pay it off quickly, the typical high interest on credit cards isn't really an issue. You could also get a signature loan from your bank, or use your existing line of credit if you have one. Unless your credit is pretty bad, you shouldn't need to make a secured loan for that sort of money.

 

You need a SIMPLE INTEREST LOAN.

 

okay thanks for the help