Does Paying Off a Car Loan Early Make Sense?

Signing Finance Documents for Car

Lexington commuters often wonder “Is paying off a car loan early feasible” or “Is it good to pay off a car loan early?” If you are able to take on the financial burden, paying off a car loan early can be a great way to save money by lowering the amount of interest that you would accrue through the course of your contract. Learn more about the ins and outs of how to pay off a car loan early with the finance team at Short Redmond SuperStore.

Is It Good to Pay Off a Car Loan Early?

Richmond drivers wondering “Is it good to pay off a car loan early?” should know that early car loan payoff offers them money saved from interest, a cushion for emergency expenses, and a lower debt burden.

What to Do Prior to Early Payoff:

  • Establish an emergency fund.
  • Determine whether or not you have a good interest rate.
  • Establish a good credit history & score.
  • Find out if you have prepayment penalties.

How to Pay Off a Car Loan Early

Drivers wondering how to pay off a car loan early in Winchester can relax as there are so many options that are at their disposal. Some of the easiest ways to accomplish this include:

  • Bi-Weekly Payments – After confirming this payment schedule with your lender, you will be able to add an extra full payment a year.
  • Round Up Your Payment Each Month – Round up your monthly payment to the nearest $50 to save interest.
  • Make One Extra Payment Each Year in One Lump Sum – Danville residents can also make one large payment a year that would cover the interest accrued for that fiscal year.
  • Refinance with a New Car Loan – Negotiate to refinance with your lender to secure a great deal.

Learn More at Short Redmond SuperStore!

Now that you have learned the ins and outs of paying off a car loan early, stop by our dealership near Danville today to speak to one of our finance specialists in person. Contact us today to schedule an appointment!

 

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