When we bought the car, we accepted the 75k mi extended wtty plan. I think it costs us about 60 a month. Can we cancel this and reduce our total monthly payment? Or does Toyota now not allow cancellations (per contract)? I dont have the contracts, our home was in a fire and all paperwork was lost.
welcome to priuschat! i don't see why not, you're more likely to have a problem going forward than you were for the first two years, so it's all to toyota's benefit. sorry about your home, all the best!
If you rolled the cost of the EW into a loan, chances are your payments will not be reduced, the loan duration will just be shortened.
Just like paying extra on a mortgage. Your monthly payment amount doesn't change, just the ratio of principle to interest and payoff date change.
When I looked this up a few years ago, a car loan was NOT like a home mortgage, it was called a "simple" loan and allowed a person to pay ahead and then skip the same number of payments without being in default. However, lenders have different rules so you have to read those of TFS. E.g., look at this post grabbed from the internet: I'm not saying that TFS is similar to Cap1, but rather each lender determines how payments that are accelerated past the original amortization schedule are handled. State regulations can lead to even more variation, even from the same lender.
And you'd be right, that's why I said "chances are". A least one other member here cancelled their EW and found the payment did not change and payments were not made ahead, only the payoff date changed.
