"How do I pay off my car loan early after getting some extra cash? "

"I recently got the money I need to pay off my car loan early. On the original agreement, there are two numbers listed for the price of the car: the principal amount and the total amount. Which one do I need to pay?


“The principal amount is how much you financed, while the total amount is how much you will pay with interest and all of the other finance charges. Unless you have not made a single payment, you will not want to pay either one of those amounts.
What you will want to do is get on the phone or schedule an in-person meeting with your lender. Your lender will then give you the current total balance due, which is the amount you’ll have to pay.
However, before you go paying off the loan, you should really do the math to see if you are going to save any money by paying the loan off early. A lot of loans have fees written into them that are designed to discourage people from paying them off early. “
Johnny Puckett
Answered on Apr 26, 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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