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It absolutely does decrease the total amount owed. Based a normal 4 yr. loan amortorization financing the 33k (to get to a payment of 750) with 2 months free will knock off just shy of 1300 off the principal. Pay it off after 2 months and save the $, less a 150 penalty it's still well worth it and anyone who pays cash (my last 3 cars were paid in cash) is making a mistake not to take advantage of this.
DB- Do you know if this penalty applies to any/all accelerated payments or just when the car is paid fully off early? My CA and finance guy told me "no penalties" does this apply only on this type of promotion and maybe that's why they may not know about said penalty?
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