How can I pay off my car loan in a year?

I got a 48-month car loan, but I'm trying to figure out ways to pay it off in a year. How can I pay off my car faster?

Answer
Paying off your car loan in a year is amazingly ambitious!
To be debt-free in just 12 months, start by using an online auto loan early payoff calculator. That way, you can determine how much extra you’ll need to pay toward the principal each month to knock three years off your 48-month loan.
Once you’ve determined how much extra to pay, you have several options:
  • Put the extra amount toward the loan in a lump sum payment each month
  • Pay twice a month
  • Place money in a savings account each month and make a lump sum payment on month 12
Unless you have a high-paying job, low cost of living, or some other incredible financial situation, your biggest challenge will be figuring out how to earn the money to pay off the loan so fast. One of the best strategies is to cut expenses. The Jerry app can help!
If you want cheap car insurance quotes fast, go to Jerry. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and will even help you cancel your old policy. The best part? The average Jerry user saves $879 a year on car insurance.
Eric Schad
Answered on Nov 15, 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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