Transferring funds from FNB cheque account to vehicle finance.

[PsYTraNc3]

Anyone know if it's worth it transferring funds from my cheque account to vehicle finance?
Basically just curious whether that will be deducted from the capital amount or from the full amount including interest...

I bought a new car in 2014 and now find myself being able to afford something better. trading in at this stage will be quite a big loss so i figured i could just pay extra every month and then after 3 years, should be able to trade and still get something back as a deposit for a new car.

 

[Drone 42]

It will make a big difference and you will pay your car off sooner. Basically you will get a interest rebate on all the extra money you pay each month. It is then almost like putting the extra money in a savings account and earning the interest rate you are currently paying on the loan

 

[Maverick Jester]

Have a look here. Not sure if it still applies, but at least gives you something to ask your financial institution.

 

[Sinbad]

It will make a big difference and you will pay your car off sooner. Basically you will get a interest rebate on all the extra money you pay each month. It is then almost like putting the extra money in a savings account and earning the interest rate you are currently paying on the loan

This.
It will decrease your outstanding capital, and your monthly interest will be reduced. You'll see the normal interest charge, then a rebate each month.
Do it if you have the money spare, but remember it's not like an access bond. You cannot withdraw that money again later.

 

[The_MAC]

This.
It will decrease your outstanding capital, and your monthly interest will be reduced. You'll see the normal interest charge, then a rebate each month.
Do it if you have the money spare, but remember it's not like an access bond. You cannot withdraw that money again later.

I can confirm this as well, also with Wesbank, rebate interest is paid back every month.

Also note, the extra money you pay over reflects on your car loan account automatically, so no need to re-capitalise the loan, that will just decrease your monthly payment which is not what you want if you paying extra towards the car.

Quite a while ago there was some uncertainty on this thread: http://mybroadband.co.za/vb/showthread.php/258978-Car-financing-making-capital-payments-(Wesbank)