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Hey

When I bought my car I financed it over 60 months. Does anyone know if you are allowed to repay principal at anytime. I really want to speed up this process and pay less interest.

My next mod should be the car itself.

 
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as far as i know any balance you decide to pay off should save you the interest on that balance. i went with a 5 year 60 month finance with HF and i paid off the total balance of the car last week. i think i saved about $300 in interest. i just wish i was able to pay it off earlier, i ended up paying about $2800 in interest, my rate (5.9%) was quite high when i bought my car.

 
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Yeah, you should be able to with no penalty. My uncle paid off his Accord in 2 and a half years, and he financed it for 5 years (60 mos.)

 
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I wonder how it works with a lease. My lease comes up in Sept 2005. I wonder If I can pay some of the buyout now. I can't give it back cause I went way over the KMs.. At 110km now and I have like 6 months to go.. I think im allowed like 24,000km x 4 years = 96,000km. I want that 2006 civic model though, so Im tempted giving it back.. we'll see.. I'll call em up next week.

 
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You'll only have to pay the overcharge if you decide not to keep the car when the lease is up. I don't think you can pay some of the buyout, but call HCFI and find out what the buyout price is and decide....

I called them last week to obtain my buyout price b/c I'm probably selling my Civic sometime soon...

 
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Thanks for the input guys ...I'm for sure going to call up HCFI and see if i can pay my principle off. I too am at 5.9%. I think I can get a line of credit cheaper than that.

 
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I guess I was the only dumbass that went all out....

My 2001 Acura EL has a finance rate of 9.2% for 60 months I was desperate for a new car, and didn't bother looking around.

Fortunately I consolidated a few months later with CIBC taking over the lease at 5.75%... So I ended up paying at the nose-bleed interest rates for like...8-9 months.

Only a few more months to go on the car payments!!!

(I haven't calculated the total amount of interest I've paid so far tho...)

So, to answer you question, YES. You can pay it off at any time, without penalty, to my knowledge. What I did was coordinate between the bank and HCFI. I got the exact amount (it was > $26000 at the time), and got a "live cheque" from CIBC. I then had to FedEx the thing over to HCFI... and it went fine. Just be sure to receive documentation indicating it has been paid off, and to follow up to make sure they got the cheque in the first place.

Side note: I asked FedEx if I needed insurance on it, since it was a live cheque worth $26k. FedEx lady goes 'well, it's documentation, as long as no one knows, you're ok. Besides, if the cheque is lost or stolen, you can get it replaced by the bank.'