How do I pay off my car loan early?

I don't want to keep paying for my car for another two years. What are some ways to pay off the loan quickly?

Answer
There are many ways to pay a loan off early without putting too much stress on your bank account.
For example, you can round your monthly payment up to the nearest hundred or make an extra payment every month. This way, you are putting more towards your monthly premiums and reducing the overall amount you will be paying in a quicker manner.
The strategy that can save you the most money is to save up until you have enough to pay the principal balance in full. If you choose to pursue this route, you will effectively be saving yourself from interest accrual if you were to make longer monthly payments.
Before picking a plan to pay a loan off early, though, you should talk to your lender to make sure there is no prepayment penalty.
When you pay off a loan, your car insurance requirements change and you can potentially save even more money. Lenders require more insurance on a financed vehicle, so when you pay off your loan, it’s a good time to reevaluate your policy.
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Johnny Puckett
Answered on Aug 09, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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