Auto Loan Example
Beat your auto loan debt with our bi-weekly payment plan.
Auto Loans
Use our bi-weekly payment plan to get out from under your auto loan debt. Pay those loans off early and save a lot of money.
At some point in time, everybody out there will need to purchase or finance a vehicle. The challenge is that vehicle prices keep going up. In fact, Business Insider published an article on March 17, 2019 with some data from Experian: record high monthly payments for new autos of $545 and record high monthly payments for used autos of $387. That same article also stated that interest rates for autos have hit a decade high. The combination of both factors (high monthly payment and high interest rate) results in every one of us paying a lot more interest to the bank on our auto loans than ever before. That’s not good financial news for any of us.
Bi-weekly payment plans help you make 26 bi-weekly payments in a year. As a result, you make 13 monthly payments in a 12 month year. Your extra monthly payment goes straight towards the principal of the loan. And that’s how a bi-weekly plan helps pay your loan off early and save you money.
The tables below have three columns of information. The first column (Monthly) is what you save if you do not use a bi-weekly payment plan: nothing. In the second column (Bi-Weekly), you begin to see savings. Even bigger savings appear in the third column (w/Boost). All you’re doing by “Boosting” your bi-weekly payment is increasing your bi-weekly payment by a dollar amount of your choosing. As you can see, the savings with the payment boost are significant.
| Monthly | Bi-Weekly | w/Boost | |
| Loan Amount | $25,000.00 | $25,000.00 | $25,000.00 |
| Interest Rate | 9.99% | 9.99% | 9.99% |
| Loan Term | 72 months | 72 months | 72 months |
| Payment | $463.02 | $234.46 | $254.56 |
| Payment Boost | N/A | N/A | $20.00 |
| Savings at Payoff * | N/A | $2,280.04 | $4,886.35 |
| Months Saved | N/A | 6 months | 1 year |
* Net service fee $399 and ACH fees.
| Monthly | Bi-Weekly | w/Boost | |
| Loan Amount | $38,000.00 | $38,000.00 | $38,000.00 |
| Interest Rate | 9.99% | 9.99% | 9.99% |
| Loan Term | 72 months | 72 months | 72 months |
| Payment | $703.79 | $354.85 | $379.85 |
| Payment Boost | N/A | N/A | $25.00 |
| Savings at Payoff * | N/A | $3,686.43 | $7,625.14 |
| Months Saved | N/A | 6 months | 1 year |
* Net service fee $399 and ACH fees.
How the bi-weekly payment plan helps with auto loans
As you can see from the above examples, the bi-weekly payment plan is a very powerful tool: loans are paid off much earlier and a lot of money is saved.
The other benefit of the bi-weekly payment plan is its ability to reduce negative equity. And that is very important because when you trade in a vehicle you have been paying bi-weekly on, there will be a much smaller loan balance carried on to the vehicle that is replacing your trade vehicle. All else being the same, that means the payment on the replacement vehicle will be lower than if you had not participated in the bi-weekly payment plan. Also, since the loan to value of the replacement vehicle will be smaller due to the bi-weekly payment plan, there will be less risk for the bank. And that means the approval will probably be a better one with a correspondingly lower interest rate. The end result: the total cost of the replacement vehicle will be much less due to the power of the bi-weekly payment plan.
Calculate how much you can save on your own auto loans
You’ve seen the examples. Aren’t you a bit more than a little curious to see how much money the bi-weekly payment plan can save you on your own loans? Just click here, then enter your auto loan information into the calculator. The results will impress you: early payoff and a lot of money saved!
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