Say I bought a car for $20,000 and made a down payment of $5,000
Now, at 0.99% APR, I need to pay around $450/month for 36months to pay off my $15,000 debt.
Now, which is a wiser option:
- I make $1,000 payments every month so that I will payoff my loan in nearly 18months. (half the actual time)
- Make a full payment of 15,000 in 1month
- Keep paying $450/month
Is there any saving in any of the three options for me? Especially, in option 1 and 2, will I be paying less interest since I will pay off my load before the actual time?