Auto Loan Financing Question

If I take out an auto loan and I am paying it monthly, on the statement it lists the principal balance and the interest separately, then total it together for my monthly payment that's due.
Every month I pay more than required and have that extra amount go towards paying down the principal.
Question: If I get the principal payment down to zero, will I still have to pay off the interest charges?

This page is a permanent link to the reply below and its nested replies. See all post replies »

whowasthatmaskedman · 70-79, M

That depends on how the loan is written. And without reading the agreement I dont know. But either is possible. It seems likely that when the principle reaches zero, the loan is discharged. However, some loans are considered fixed term, even if you pay them out early, the loan technically exists for the full term. Even if you have paid out the balance, there may be account keeping and credit charges applied monthly..😷