880 Walkers Line, Burlington, ON, L7N 2G2, Canada

How To Find Your Car Loan Settlement Figure

How To Find Your Car Loan Settlement Figure

If you’re planning to pay off your auto loan early, finding the settlement figure is your first step to calculating how much you need to pay and whether it makes financial sense or not. That’s the subject of today’s post. How to find your Port Colburn car loan settlement figure and how to pay back the loan early.

 

Auto loan settlement

 

The majority of auto loans can be settled early but there are exceptions. Some specialist loans and some bad credit car loans will have early settlement penalties. Most of the loans we deal with here do not but you should check your loan paperwork before you try to repay early.

 

Early settlement is common. Auto loans are a monthly outgoing we could all do without but we all need a car. If you have the ability to pay the loan off early and save money in interest, why wouldn’t you?

 

What is an car loan settlement figure?

 

Your auto loan settlement figure is the amount you would repay if you settled the loan now.

 

It will be made up of the outstanding amount of the loan and any outstanding interest. Most lenders do not charge fees for early settlement but some bad credit loans might, so again, check your loan paperwork.

 

You can use a car loan settlement calculator to assess how much you have outstanding or contact your lender.

 

We tend to recommend calling your auto loan company and asking them for a settlement figure as it will be much more accurate.

 

If you have the funds, you can settle the loan there and then. If you need time to raise the funds, you can ask how you would go about settling the loan and make the arrangements from there.

 

Most lenders will request you make the funds available in the account you make your payments from and they will take it from there. Some will nominate an account for you to make a bank transfer. Different lenders handle this in different ways.

 

What next?

 

Once you have settled the loan, the car is finally all yours. You will have full title to the vehicle and your credit report will be updated to mention the loan as a settled account.

 

You can either keep the car and live free and clear for a while or trade it up for a newer or better model. It depends entirely on your priorities and what you want to do next.

 

Don’t worry too much if the settlement amount is for more than your car is currently worth. Negative equity is normal for new car purchases and nothing to worry about. Once you’re free and clear, you won’t have to worry about it anyway!

 

Settling your auto loan early

 

Early settlement is the most effective way of getting out of a loan. It does require having a lump sum around, or a second car loan to pay off the first, but it means that initial loan will be a thing of the past.

 

If you’re paying it off with cash, you’re free and clear and have one less monthly outgoing to worry about. If you refinanced with a new loan, you now have a hopefully cheaper or shorter auto loan to service!

 

We will use all our skill and experience to deliver the lowest possible Port Colburn auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: Auto Loan

Tags: ,