Quote:
Originally Posted by zmyride
Does the original poster realize that he is just stretching his car payments 8 months longer?
Not paying for 8 months now means you have to pay 8 months longer later. Thats a foolish thing to do because your car depreciates and you could owe more than the car is worth.
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By skipping on 8 months of payments at the beginning of the loan you are actually adding on several payments, probably an additional 5-6 months worth. Remember 90% of what you are paying in the first year is interest. If you don't pay, interest accumulates. The bank will just recalculate the monthly payment by a few dollars to keep the term the same, so it doesn't seem like a lot (monthly) but it really is.