Idea for GMAC financing

[TrueBlueLS]

Okay... I've noticed that the finance charge keeps going down as long as I make a payment higher than my required payment. So if I were to keep doing this, could I actually get my finance charge to go away or would GMAC be smart enough to realize this?

 

[iamwiz82]

Do yourself a favor and call GMAC and tell them that you want the difference in all of your payments to go towards the principle. If you do not, they will just apply it to the interest.

 

[TrueBlueLS]

It is going to the principle on the loan. As I make larger payments on my account, the finance charge goes down and the unpaid balance (towards the principle) goes up. I just think it'd be funny if people could cheat a loan company out of their interest by making what... an extra car payment or two on their account.

 

[vi edit]

All you are doing is paying off the interest. You aren't denting the principal outside of what the normal monthly payment would have covered. Do as iamwiz said. You'll actually save money that way.

 

[vi edit]

I can't say I've ever seen a monthly payment affected by applying extra money to the principal. In essence, they are refinancing your loan each time you make a payment. I've seen it done with knocking down interest, but principal.

 

[iamwiz82]

Originally posted by: AMDStunna
It is going to the principle on the loan. As I make larger payments on my account, the finance charge goes down and the unpaid balance (principle) goes up. I just think it'd be funny if people could cheat a loan company out of their interest by making what... an extra car payment or two on their account.

no, you are paying off the interest. Trust me.