Bi-Weekly Payments 101

Does paying your car loan bi-weekly save you money? Watch Car Buying 101's Lawrence Alexander show you how to save thousands and how to shorten the time it takes to payoff your vehicle!

[joea]

What this dip forgot to mention is how this works. 52 weeks in a year cut in half is 26 or 13 months worth of payments, so making 26 payments of $200 a year comes to $5200. Making $400 payments for 12 months comes to $4800. So in the very long run of it you're saving money. Long story short you're making one extra payment a year.

[zPillz]

I would suggest biweekly and add a little bit more than half. Say your payment is 400, put 225 in every other week and it will help so much more. Especially if you put the extra straight towards principle.

[iaindennis]

I've got a crazy mad Idea - save up and pay cash and cut out the $8, 800 in interest payments

[MRIVERA]

You really didn't explain how it makes it cheaper🤔

[CarsUnderHammer]

You can even pay it daily.. Divide that $400 by 30 days and pay it daily..You will finish paying off your call fast

[courtneydurham]

Biweekly payments add up to 13 monthly payments in 12 months. This because paying $200 every other Friday comes out to 26 payments, so by the end of the year you are a month ahead. On a 72-month payment plan (a 6-year loan) you end up 6 months ahead. You're saving money on one month of payments.

[julie]

I started paying bi weekly car pymts but only b/c I made it easier to budget the pymts. I did not realize it would save me money. I didn't tell the financing co. to sch my pymts bi weekly, I just started doing it that way.

[nolimitslim]

You pay it off because every 2 weeks you make a payment but sometimes in a month with 31 days you may get paid 3x which is 200*3=$600 in one month. I’ll didn’t do the biweekly pay but I do pay more towards my principal so I turned a 72 month term to a 4 year term by making additional payments towards the principal

[dboucher]

I bought my dream car with cash last year. My wife bought her dream car with cash 2 months ago. We paid $0 in interest. Do what we did.

[thomasshriver]

This makes sense because if you pay it bi-weekly you have two months out of the Year where you make three payments on your vehicle and over the course of 6 years or 72 months you basically made an entire Year's worth of payments just by paying bi-weekly

[GraceFaded]

The real smart choice is driving a car you can afford to pay cash for and not being owned by a depreciating piece of metal...

[wn.]

Thanks making this video but it won’t work that way. You need to tell your viewers that they should talk to a bank/ credit union representative and make sure that it only goes towards your principals. Otherwise they would automatically add that to your next payment.

[jamesp]

At first I thought he was in front of a real bank vault

[mainmaro]

This is a good idea but.. make a payment towards the principle evry month as well . Most finance company's dont penalize you for it.

[MrDon]

you didn't explain at all how it makes the payment 7 months less then 72 months when the total payment per month is still $400?

[justinfisher]

OR you could just make the payment and then call back and make a PRINCIPAL PAYMENT! NOT SURE if I agree with the video...

[johnfernando]

What if i split my monthly into weekly?

[coney]

I have a better idea. Do NOT take a car loan out!

[thomasvillanueva]

Do we have to call and tell them this payment is going to the principal?

[PrymeTyme]

I have 19, 000 more left on my wife's car ( 412 a month) and i have a goal to pay it off in 2 to 3 more years to start saving for a home, so i start paying 250 every two weeks, will that be enough to accomplish my goal or should i be paying more every two weeks?