There used to be (and probably still is) a "Rule of the 78's" that may apply to your auto loan. These loans are front loaded with interest pre-payments.
Some companies use "Simple Interest" for auto loans. These essentially are the same as home loans.
So, in order to determine what's best for you, look at your contract.
I know that our loan with Honda is a "simple interest" loan. We are not penalized for pre-paying in any fashion.
|