PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What's the best way to pay off a car loan fast?
I want to pay my car loan off faster. Should I put money in a savings account and pay it off when I have the money, or should I just make month-to-month payments until it's paid off?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The interest rate will play a huge role in how you pay the car off. If you got a promotional zero-percent APR rate, then putting the extra money in savings and paying the rest of the loan off when you have the cash makes sense.
But if your interest rate is higher than your savings rate (which is highly likely), you should keep paying month to month. To accelerate this process, if you have a bit of extra cash each month, make a principal-only payment. This will lower the amount you owe, which will subsequently lower your overall interest paid into the loan.
And once you have the loan paid off, you can also save money by dropping full-coverage car insurance if you don’t need it and opting for high-limit
liability insurance
instead.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
