I financed through Honda finance and it’s an open loan where you can make as many lump sum payments to your principal. I confirmed with my sales guy that there’s no penalty and it just hits your principal. Your monthly will just readjust to the new principal remainder. I have yet to confirm this with Honda finance but I will double check my contract lol. I really hope it isn’t the one where you still owe the stupid interest.What I have learnt …..There are 2 types of car loans available with your bank….one is a kind in which you can pay off all loan before time….thus, cutting further interest rates and with no penalty ……
And then the other type of loan is that Although if you pay off all loan…..you still Have to pay all interest amount which was initially calculated at the time of signing agreement. ………and there might be penalty as well..
LOAN FROM THE DEALERS…..I am sure that although you opt to pay off all loan …..still you need to pay interest which was calculated initially at the time of signing agreement……and yes there could be penalty as well
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