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Can I Pay Off My Car Loan Early?

Car Loan
 

If you’re in the Sicklerville area looking to finance a used or new vehicle through an auto loan, you’ll need to budget a monthly payment that works for you and your Mullica Hill lifestyle.

However, if you’re interested in paying off a car loan early, you absolutely can! Our finance team will walk you through the process of how to pay off a car loan early at Cadillac Of Turnersville. So, is it good to pay off a car loan early? We’ll answer that question below in our guide along with these topics:

  • When paying off a car loan early makes sense 
  • How to pay off a car loan early

We’re here to help you reach your financial goals! Explore our tips for paying off a car loan early below.

Is It Good to Pay Off a Car Loan Early?

When it comes to paying off a car loan early, it takes time, commitment, and financial planning but it is always worth it. Your reward is lower interest paid over time, decreased chances of being upside down on your loan, and a lower debt-to-income ratio.

When Paying Off a Car Loan Early Makes Sense:

  • If you have little to no other outstanding debts and would like to free up your money for other interests. 
  • You have enough funds saved up that won’t affect your emergency funds or other finances.
  • To meet your financial goals, you need to lower monthly expenses such as retirement or expanding your Mullica Hill family. 
  • You desire to improve your debt-to-income ratio. 

How to Pay Off a Car Loan Early

Follow these steps on how to pay off a car loan early below:

  • Make Bi-Weekly Payments –Contact your Williamstown lender to ensure it’s okay to make your monthly payment every two weeks by dividing your monthly payment into two. 
  • Round Up Your Payment Each Month –Round the payment up to $50 each month.
  • Make One Extra Payment Each Year in One Lump Sum – Make an additional large payment each year to achieve savings on the interest amount. 
  • Resist the Temptation of Skipping a Payment –Avoid skipping a payment, it will lengthen your loan term.
  • Refinance with a New Car Loan –Only consider refinancing if you can secure a lower interest rate each month. 

Explore Finance Information at Cadillac Of Turnersville! 

Learning how to pay off a car loan early benefits you and your financial future. Contact us at Cadillac Of Turnersville for the next steps!

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3400 Route 42, Turnersville, NJ, 08012
Cadillac Of Turnersville 39.72933, -75.03212.