PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can you pay off a car loan early?
Can you pay off a car loan early? What are the pros and cons? I want to pay my car loan off early, but I'm not sure if it's the right move.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Most lenders allow you to pay off a car loan early.
However, you should be aware that some may charge a prepayment penalty.
Some of these penalties are so stiff that there’s no advantage to paying your loan off early, as the penalty is more than the amount of interest charged.
As far as paying off the new car loan, you can save yourself on interest over the life of the
new car
loan, provided there are no prepayment penalties. Conversely, the downside to paying that off is a hit to your savings; but if you can afford it, it’s a smart move.”
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
