Tips on Buying Cars: Car Payments, loan contract, car payments

Question
Hello,

Quick question. I had asked a former car salesman about tips on saving on the cost of a car in the long run. He advised me that I could make my regular car payment and make a separate payment specifically towards the principal. On a site, I read that simply increasing the amount you pay each month will only shorten the time it takes to pay the car off. So, will making separate payments, one for the monthly payment and one towards the principal, will this lessen the amount I pay on interest in the long run?

Thanks!

Answer
Hi Frankie,

I agree with what you read and would surely like to know more in detail what this former salesman is talking about. The only way I see this happening is if it's an open personal loan,not a standard car loan contract.


Ray   http://www.usedcartips.org/