k3vn

Hi Club,

I searched around for a thread but couldn't quite find the answer. So I purchased my 350f a few weeks ago, and instead of trading in my car, I decided to sell it on consignment through a private auto broker and only put a small down payment on the 350 ($5k) and took a large monthly payment, but I expect to receive a big check from selling my old car (2013 subaru).

So my question:
If I apply the money from my other car (say 2 years worth of payments) towards the payment, will this defer my next due date to 2 years from now? Or will I still be responsible for making the monthly minimum every month? I'd rather have a large time buffer than asking them to lower my monthly payment, after I apply the money.

Thanks!

BrandonIS

Unless it differs from bank to bank, then yes to your question. I did a similar thing when I bought my E46 M3 and my next scheduled payment was due 2 years later.

TedxGS

iTrader: (1)

I always over pay and my due date gets pushed a few months later. But I still pay more every month even though my due date gets extended. The reason for this is the APR. The sooner you pay it off, less interest you pay at the end. If you over pay, and wait tell the next due date (for you 2 years) then start paying from that point. they got you on their APR and you'll be paying a little more in interest.
If I were you, and to build your credit, when you get the lump sum on your Subaru, don't throw it to Lexus Financial all at once, break it down, but still make the payments big.
Basically faster you pay off the car, you'll save money at the end.

k3vn

Thanks for the replies guys!!

azmojo

What I would do is call Lexus and ask them about "recasting" the loan. They'll usually do this once or twice and may charge a small fee. Basically, they'll lower the payments to reflect the lower loan amount but keep the terms of the loan the same.

Alternatively, the best course of action is to send in the money and have it applied to PRINCIPAL (be sure to specify this). This will reduce the amount of interest you will pay and you will pay off the loan sooner, but it will not push out your next payment due date.

sdotk

If u call lexus financial services they will give u a separate address to send money that applies to your principal payment. That's how u can avoid paying less interest and it should lower your monthly payments. I would do that if I were you