Pay interest on late car loan charges?

Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Dear Driving for Dollars,
I have a car loan I thought would be paid off this month, yet the lender tells me it won’t be because I owe interest on late charges. The interest they say I owe is several thousand dollars, and I don’t have that much to pay off the car. Do I have to pay it?
— John

Dear John,
If you’ve been late on your payments and didn’t make your monthly payment plus the late fee, then the interest charges that are accruing are on the late fees themselves. Review your car loan agreement to be sure, but you most likely need to pay these interest charges in order to pay off your car loan in full and get the lender to release the car title to you.

Ask the adviser

If you have a car question, email it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.

Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use.