Q: If I'm paying my vehicle off 11 months early am I legally obligated to pay the interest of the full term
The vehicle was 3500 cash he agreed to finance it for one year with 1500 down after a month I made my first payment of 300 the next day I was hit insurance has totaled the vehicle he is saying the payoff is 3300 after financing it for a year it would have been 5100 at $300 a month however I've only had the vehicle one month legally can he charge me that interest for a year
A: If there is a written contract, then the terms of the contract govern what you must pay. Typically lender contracts have clauses that cover early payment. If this is just an individual, then it is the terms that you agreed to whether in writing or verbal. If you did not agree to pay interest for the entire year, but only on the outstanding balance, then it is whatever interest has accrued at the time of payoff.
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