How to pay off a car loan

You will need
  • - auto loan agreement;
  • - insurance contract.
Carefully read the terms of the loan agreement for the purchase of a car. Such a loan agreement must necessarily include: the brand of the car being purchased, the repayment schedule of the loan, the maturity of the loan, the amount of the monthly payment, penalties for late repayment and other conditions.
Make monthly payments according to the repayment schedule of the loan specified in the loan agreement. There are two ways of monthly repayment of auto loan: annuity payments or differential payments. With the annuity repayment schedule, car loan debt repayment takes place in equal amounts. And with a differentiated repayment schedule, the amount of your monthly payment will constantly decrease. Such methods of repayment are negotiated at the time of concluding a credit agreement for the purchase of a car.
Pay monthly payments according to the deadlines set in the repayment schedule.In case of late payment, the amount of the penalty for late payment is added to the amount of the monthly payment. Remember that the frequent late payment of monthly payments will entail the formation of a "negative" credit history for you, as a borrower of this bank, and will affect the subsequent decisions of the bank on whether you will issue other loans.
Renew a car insurance contract. At the conclusion of the loan agreement, the obligatory condition was the insurance of the pledged object, which during the car loan is the purchased car. Usually, insurance contracts are made for a period of 1 year, but since the auto loan contract is concluded for 5-7 years, then you need to go through the procedure for renewing the insurance contract for the next year every year.
Check with the bank the amount of the last repayment of the car loan, as it may be different from the amount specified in the repayment schedule. After the full repayment of the car loan agreement, the bank must remove the arrest from your car and withdraw it from the register of collateral objects. Then the bank employees must put a mark on the loan agreement - “extinguished” and certify this mark with the signature of the head of the department.

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