Free yourself from auto loan debt faster using biweekly payments
Making small changes to the way you manage your auto loan repayment can reduce the time it takes to pay down your loan. Accelerating your payments with a biweekly schedule will not only help you become free from auto debt sooner, but it’ll help keep more equity in your car. The money you save can be used to fund your future, with things like your 401k or the down payment on a new home.
A longer car loan term can mean more of your payment goes to interest.
If you are one of the 40 percent of car buyers with 72-month car loan terms, then you are likely to pay more interest over the life of the loan and could end up with less equity in your vehicle at trade-in. Bi weekly car payments and other accelerated payment plans can help you squeeze more interest and equity out of your new car purchase.
Fight high interest rates
Do you have a car loan with a high interest rate? One way to lower the total cost of car is to use a bi weekly car payment to accelerate your pay off. Extra payments to principal will chip away at your loan balance early in the life of the loan.
Owe less at trade-in.
Accelerating your auto loan payments also put you in a better equity position sooner in the life of the loan which means you will owe less on your loan at trade-in. You can determine just how much you stand to save by entering your loan information into our auto loan savings calculator. Let the numbers speak for themselves.
Call a loan specialist today at (800) 894-5000 and start putting your money back into your pocket, rather than the banks. Once you enroll your car loan, you become a member of AutoPayPlus and you can add your mortgage, student loans, and more to compound your savings. See more about our pricing here.
91% of People Who Trade-In Their Cars Still Owe Money
On a $24,500 car loan at 7% with a 66-month term, the biweekly option is clearly the winner over a conventional payoff strategy.