How to Make My Car Payment Every Two Weeks

Interest rates on car loans add a hefty surcharge to what you pay for the auto. After five years of making those payments, you might have doubled the actual price of the car. Making an extra car payment every once in a while is good, but making a full car payment every two weeks, instead of once a month, gets the car loan paid off in less than half the time. Even making half the payment every two weeks rather than once a month gets the loan paid off more quickly. That's because there are 12 months in year, but 52 weeks divided by two is 26 payments, so you actually make two extra payments.

Instructions

Full Payments Every Two Weeks

1

Read the financing contract. Check to see if there is any prepayment penalty.

2

Call the financing company if you have any doubts about making the payments. Find out if the company will apply the payments to the principal, which reduces the total interest paid over the life of the loan.

3

Write out and mail your check for the amount of the car payment. Enclose one of the payment coupons with the check.

4

Set up a payment account online. This should not be difficult to do if the financing company is a credit union or bank. Transfer the amount of the car payment from your bank account to the car payment account every 14 days.

Half a Payment Every Two Weeks

5

Contact the financing company to see if it will change your contract from once-a-month payments to half the payment amount every two weeks. Be aware that if you miss or are late with one of the two-week payments, the car can be repossessed more quickly than if you miss a once-a-month payment.

6

Make the first payment a full month's payment on or before the due date, if you don't want to change your contract with the financing company. Two weeks later, send in a half payment. If you just send in a half payment on the due date, you've technically breached the contract. Depending on your state and what's in the contract, the car may be repossessed.

7

Note on the check the financing account number. If you're paying online, make the full payment the first time and then half a payment every two weeks.