Looking for help on car loans #3538
I am in the process of buying a new car and to do this I am going to take out a car loan. With the loan is it going to be better to get the lowest payment that I can? And should I worry about the fact that I want to pay the loan off earlier than what the lender is stating?
Best Answer Chosen by Voters:
Those that get the lowest payment each month are paying less right now, however, in the long run, they end up paying more. The reason for this is that they do end up paying more interest in the long run which increases the total amount that they are paying. For this reason, if the person can afford to go with a shorter time period, then they are going to have to pay back less in the long run. However, if the person can only afford the lesser payments, then this is what they are going to have to do. In regards to paying off loans early, each lender has a different policy. Most lenders are fine with paying off the loan early, however, some lenders will charge a penalty for doing this. The person must make sure that they are checking out these terms before they make a decision.