How can I pay off my car loan early?

"What are some tips to pay your car loan off more quickly? I want to pay my car loan off early, but I'm not sure how to do that."

Answer
“You can pay off your car loan early in several ways, including:
  • Making an additional payment to the principal each month
  • Making one larger lump sum payment a year
  • Round up when you pay the monthly car note (example: Pay $500 a month on your $438 car note.)
  • Refinance if it makes sense
If saving money is your goal, consider trading in your vehicle for a cheaper, used car.
Just make sure that your lender doesn’t penalize you for prepayment before you decide to make these payments.”
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Eric Schad
Answered on Jul 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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