This may be the wrong place for this thread, my appologies. My monthly payment for my HHR is $273.25 a month with 0% financing. I have made 3 payments of exactly $280.00 every month. My newest statement says I owe 266.50 for my next payment. How can a monthly payment go down when I have only paid $20.25 extra in 3 months?

 

They are just applying the extra you paid to your next payment. Mine is the same way. You amount due is only different for next month. I prepay some on each of my loans. On one I could go several months without paying.

But my question is why pay more with 0%?

You're not saving anything by paying early. The only accounts I do that with are ones which charge me interest. On our 0% loan we only pay what's due.

 

Honestly I do it so balancing my check book is a bit easier. Thank you giving me some insight on this. I should be paying more on my wifes Cavalier now that I think of it.

 

Your monthly payment has not changed, you have only prepaid for your next payment from you past payment extra of $6.75, this prepayment can do the following for you...

Point one - While small your credit report will show paid in advance which in _some_cases_ could make your credit report look better. [some lenders see pre/advance payment as a bad thing, because you did not pay per-contract!]

Point two - While small you will shave at about a payment off the end of your loan... if you keep the loan for the full term..

 

If you overpaid by $20.25, shouldn't the next payment be $253? ($273.25-20.25)

 

Try that with a mortgage instead. Your car loan is not saving you anything, but on a mortgage if pay enough onto the principal, you have the distinct possibility of saving thou$and$ of dollar$.