boyah

Does anyone know how the infiniti fiinancing works? My question is: If I get the 5 year loan at 3.9% and I decided to make a payment of around 10K like 2 months after my loan goes thorugh do they take that $10K right of the principal so my monthly payment goes down? Or can you even do that with Infiniti? Also do they have early payment penalties?
Thanks

Blackjack

iTrader: (3)

I think you would still owe interest on the full amount financed.

CrazyRuskie

iTrader: (3)

I don't believe you will owe interest on the full amount financed. Your monthly payments will remain the same, but your loan will be paid off much quicker.

boyah

does anyone have their phone number so I can call them and find out for sure? It makes a big difference as I plan on paying the car off in like a year but I need the low monthy payments of the long term loan for a while. thanks

Black Betty

iTrader: (60)

You can make a payent toward the principal at any time. It will dramatically reduce the amount of interest you owe. You basically are refinancing the car. You can probably keep your payments the same and pay it offf much sooner, or reduce the monthly payment and finance for the same term. Da mayor can probably be the authority on this. Mr. da mayor?

iko

Your payment is your payment. Any principal reductions will reduce the length of your contract, thus, reducing the total interest paid. Regardless, you'll still have to make your agreed upon monthly payment.

You might call to confirm:
IFS Customer Service
P.O. Box 660360
Dallas, TX 75266-0360
800.627.4437
7:00 a.m. to 7:00 p.m. Central Time

boyah

wow, I called and the lady was a retard. I know my credit union does this. If I say make a payment of $5K my monthly payment gets automatically adjusted to reflect the new balance. IFS said you can make payments directly to your principal but she couldnt tell me if my monthly payment goes down. It should or at least the term should go down like iko said. I just need to confirm for sure or I will just go with my credit union for the 6%.

gogetter

iTrader: (1)

maybe the credit union is the best bet even with the higher rate and at least theres no BS to deal with and you wont have to worry about them telling you one thing which turns out to be something else ! (dealing with the dealer is like dealing with the devil... you got to know all the angles)

boyah

yeah, at the end of the day $20K at 60 months at 3.9% and 6.0% is no that big of a deal

joeposter

On an automobile loan? Typically, it would just come off the principle so it would be paid off quicker with less interest. A HELOC or credit card would adjust your monthly payment but not your typical auto loan or mortgage.

joeposter

Hmmm, sounds like it might reduce your payment...

http://www.infiniti.com/financing/purchase-faq.html

Why is the payment due different from my regular payment amount?

If you have paid more than your regular payment, any funds remaining after the interest and principal is satisfied, are applied toward your unpaid principal balance. You also gain the benefit of this additional amount reducing the amount of your next monthly payment. If your payment is less than the regular monthly payment the difference due will be added to your next monthly payment.

Although, depending on your tax situation, you may be better off putting the extra $10k in a money market or online savings account.

iko

Interesting. I wonder if they're applying this toward the total payment (in which case your add'l principal payment is paying interest) or if they reduce the amount of principal on your next payment.

In my opinion it's probably best to refinance your loan with a credit union, use a HELOC or just bank it and earn more interest than you're paying.

DPMan

Exactly.

I am sure you can find a money market account around 4.5% interest.
10k is going to get you 0.6 interest if using their 3.9% financing deal or 1.6 if using their 2.9% deal (with my estimated 4.5% money market rate).

No reason to give them your money so they can make more interest off it Thats why the financing rates they are advertising are called "deals" because they are lower than what you could earn with your money elsewhere.

Hope that makes sense.

DPMan

Not sure this is the best route, arnt these rates like at 7-8%? Maybe im missing your theory.

boyah

IFS said that if you overpay a monthly payment the balance is applied to your next months payment. If you want to pay down your principal you have to send a cehck to an entirely different address. I think at the end of the day your monthly payment stays the same and the loan just gets paid off quicker.