When narrowing down and ranking the best car loans, we focused on the following features: To determine which auto loans are the best for consumers with bad credit, CNBC Select analyzed more than a dozen car loan providers, including banks, dealerships and online marketplaces. Investing +More All Investing Best IRA Accounts Best Roth IRA Accounts Best Investing Apps Best Free Stock Trading Platforms Best Robo-Advisors Index Funds Mutual Funds ETFs Bonds Help for Low Credit Scores +More All Help for Low Credit Scores Best Credit Cards for Bad Credit Best Personal Loans for Bad Credit Best Debt Consolidation Loans for Bad Credit Personal Loans if You Don't Have Credit Best Credit Cards for Building Credit Personal Loans for 580 Credit Score Lower Personal Loans for 670 Credit Score or Lower Best Mortgages for Bad Credit Best Hardship Loans How to Boost Your Credit Score ![]() Taxes +More All Taxes Best Tax Software Best Tax Software for Small Businesses Tax Refunds Small Business +More All Small Business Best Small Business Savings Accounts Best Small Business Checking Accounts Best Credit Cards for Small Business Best Small Business Loans Best Tax Software for Small Business Personal Finance +More All Personal Finance Best Budgeting Apps Best Expense Tracker Apps Best Money Transfer Apps Best Resale Apps and Sites Buy Now Pay Later (BNPL) Apps Best Debt Relief Best Mortgages for Average Credit Score.Best Loans to Refinance Credit Card Debt.But if for some reason you skipped a month or two, then your extra payments would go back to filling up the pay-ahead bucket. So right now, because you still have a pay-ahead balance, your excess payments are going to principal. But once you had paid 3 months ahead, at that point all the excess started going towards principal. ![]() Meaning it was a credit against future payments, not an extra payment on principal. When you first started making extra payments, that money did go into the 'pay ahead' balance. I can't find that on CarMax's site currently, but it would explain what you're seeing. There's an older thread that I think explains this: The wording on the CarMax statement OP posted - "you are not required to make a payment this month" - indicates that at least some of OP's money is in the latter state, pay ahead, not the former state of principal repayment. Here is an older thread from someone experiencing that exact thing on CarMax: Your amortization schedule remains the same, but next month's payment is basically just waiting to be applied without you having to do anything. This does not reduce your principal balance, but instead gives you a credit towards future payments so that you can skip a few months if you want. The other is that they keep the excess as a 'pay-ahead' amount. You have advanced the amortization table, as you say, but you still have to make next month's payment on time. This reduces your interest accrual, but does not change the due date of your next payment. One is that they apply the excess to your principal balance. When you pay excess on a car loan, one of two things can happen. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash. ![]() Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests.
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