Bi-Weekly Payments:

You know that Auto loan interest is calculated on a loan principal (the total amount borrowed). As your principal shrinks, there's less of it on which to charge interest. Each month that goes by, your interest decreases.

If you make just a little bigger payment each month toward your Auto Loan , you will dramatically reduce the interest owed on your loan by the end of the year. Of course, in addition to that, you will have cut into the principal by that much more than you would have otherwise.


With a biweekly car loan you are making payments every two weeks.  But keep in mind that you are making 26 payments half payment a year which equals 13 full payments instead of 12.

Bi-weekly savings are achieved by simply paying half of your monthly auto loan payment every two weeks and making 1.5 times your monthly auto loan payment every sixth month. By the end of each year you would have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. This simple technique can shave time off your auto loan and could save you hundreds or even thousands of dollars in interest.

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