Is there any benefit to doubling up on your car loan payments each month?
I was thinking of paying double the amount of my monthly car note. Is there any benefit to doing so?
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Answered on Apr 27, 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.
“Doubling the amount you put toward your car loan is a great idea to save money. However, you’ll need to make two separate payments to maximize your savings.
First, you should pay your normal car note on the day it’s due. Then, make a separate payment that goes straight toward the principal, known as a principal-only payment. By doing so, you can pay your loan off faster and put more money in your pocket.
To add to your savings, you might also want to shop for car insurance quotes online to get the best bang for your buck.”
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