1. Make a larger down payment. This will reduce the amount of money you need to borrow and will save you interest over the life of the loan.
2. Make extra payments each month. This will also reduce the amount of interest you pay and will help you pay off your loan faster.
3. Refinance your loan. If interest rates have dropped since you took out your loan, you may be able to refinance it at a lower rate. This will save you money on interest and could help you pay off your loan faster.
Is there a penalty for paying off a car loan early?
Some car loans have a prepayment penalty, which is a fee charged by the lender if you pay off the loan early. The amount of the fee varies, but it is usually a percentage of the loan balance.
Before you pay off your loan early, check to see if there is a prepayment penalty. If there is a fee, decide if it is worth paying in order to be free of your debt.
