Question about car financing ...

[anton]

Hello,

we just bought a car, and wanted to know , does car financing works the same way as house financing, so first payments go to repay all interest, and just then you pay for your car or no ?

Thanks,
bye.

 

[Descartes]

It depends on the type of loan. A "simple interest" (I believe that's the name) would be a loan where you pay on your principle each payment. That's the only one I know of...

 

[Thegonagle]

Not if it?s a simple interest loan. It should be clearly stated somewhere on the loan contract that you signed in the dealership. If it was just a day or two ago, call the finance manager (the guy who signed you out) and ask, ?is this a simple interest loan??
Otherwise, call the bank issuing the loan and ask the same question.

I think it?s the only type of auto loan available, but that might vary by state.