[nazali]

only occured to me, if I am paying extra on my loan (varying amounts) there is going to come a point where the final payment is going to be less than calculated.

example, I've gotta loan for something like 360/biweekly over 5 years
so if nothing changed the last payment would bee $360

BUT now if I'm dropping, say $500, $4k, $100 extra every now and again, I'm still paying $360/bi/week.

So lets just say for arg's sake, the final payment comes to say ? $60
Will the DD come out as $60 or $360 and then they owe me $300 ?

Should I just pre-empt as I can log on to BMW FS and pay the final amount in advance when I get close up

thoughts ?

[leftoverture]

Well, first, I never, ever let them take the money directly from me. I always maintain control of my payments, even if it costs me half a point on the loan. Second, you are correct, the automated system might just take the scheduled payment. They would, of course, eventually get that money back to you, but I'd get ahead of the game and make the final payoff over the phone with a live human being.

[mattc1176]

In my experience they will never take out more than the remaining balance. So even if you are on autopay for $360 a month, if the final payment is only $200 they will only take that out. They will then consider the loan paid and won't continue taking out automatic payments even if there are technically a few months remaining on the original agreement.

Also, assuming you bought the car a few years ago at a low interest rate, you can likely make more money now keeping excess cash in a high yield savings account instead of paying down the loan.

[JMcLellan]

I'd plan to make the final payment adhoc either online or talking to a rep. BMW FS will also stop auto payments once the loan is 100% paid-- just did this and can confirm. With other creditors if I ever overpaid a balance I always received the overpayment balance via a check in the mail.

[nazali]

thank you all for the sterling advise !