Is it possible to make principal-only payments on a car loan?

I want to lower my principal to shorten the length of my loan. Is it possible to make principal-only payments on a car loan?

Yes, you can make principal-only payments on your car loan in most cases. Talk to your lender about the best way to make principal payments on your loan.
A principal-only payment not only shortens the length of the loan, but it can also cut the amount you pay in interest over the life of the loan. However, you should make sure that you don’t have any prepayment penalties on your car loan.
These penalties can often add up over time, so if you’re not careful, you can offset the savings of paying down your principal by paying too many fees. Always ask your lender about this before you decide to blindly throw money at the principal.
If you want to free up some cash to throw toward the car loan principal, give the Jerry app a try. Jerry compares personalized rates from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 23, 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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