Help Needed, auto loan ?'s

[2angelsinheaven]

I got a new car last month, I have a simple interest loan with a daily interest of $3.33 a day... GASP! My interest rate is not that high but that seems outrageous... so here is my question....
My due date is the 21st, if I pay today will this save any money since interest is accured daily?
If so I will be paying early every month, I've had the money to make the payment for two weeks but was just going to send it it this week for payment on the 21st. But now that I know my interest is daily, I'm assuming this will help to send it early... am I right? Does it really save a ton by sending it in early?

 

[chrissyk]

I don't believe so, since it will be credited as a payment and not as principal. You don't stop interest from accruing by making a regular payment (even if you do make it early).

 

[Kimickey]

It will not since your interest rate is based on the total purchase amount.

 

[2angelsinheaven]

Ahh.... thats what I figured. But it does help when you send a check towards the principal, right? I found a calculator that said if I sent an extra $50 a month towards my principal it would take 1 yr 1 month off my loan and save me almost $800.00.