klaw2000

So I'm planning on financing for 3 yrs, but I'll probably be able to pay it off early. Does anybody know if Scion have a penalty for doing this? I know a lot of automakers/banks charge a fee if you pay it off early, cause then you're paying less interest and they're greedy. Thanks in advance.

-KL

holaplaneta

no penalty my son! all you need to do is call and actually if u go online and check there will be a payoff amount at the time, just call em and done deal!!

TheQuietThings

no penalty at all, its what i did

call up TFS and ask them how much the payout is, and then write the check!

tikbhoy

if u can pay it off less than 3years your financing, you might as well get a shorter term, so you can avail a lower apr

shadow12one

If its a simple interest loan you can prepay as much as you want. A traditional loan has scheduled interest. This means that if you pay on the 15th, you pay on the 15th. If you pay on the 1st, they will hold it until the 15th and then apply it. This way they always know how much interest they're getting off you. With simple interest loans your payment is applied as soon as they get it and the balance gets recalculated. So its actually a good idea to pay twice a month instead of once a month if you have a simple interest loan. This way, because of the extra days in a month your getting an average of about 1 extra months payment in a single year. So you pay your car off faster and you save a ton on interest. But make sure your able to do that first. Some places do charge a penalty if you prepay. Ask questions, don't just take a loan cuz it sounds good.