When you decide to buy a car, you want to not only make a smart purchase, but a smart financial decision as well. Many people choose to take out a car loan, and these loans will eventually need to be paid off. But is it possible to pay your car loan off early?
At Genesis of Littleton, we want to help our friends around Parker, Littleton, and Castle Rock, Colorado. We’ve gathered these tips on how to pay off your car loan early so you’ll know what steps to take to secure your financial future. Keep reading for our tips and contact our team for assistance!
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At a Glance |
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Increase your monthly payments to pay the loan off faster |
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Plan your monthly expenses |
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Refinance your auto loan |
First things first, why might paying off your car loan early be a wise decision for you? Car loans are a great option to help people afford the car they want, but that does mean having to factor your payments into your monthly budget. Paying off your car loan early could:
When you pay off your loan early, you could save money on interest and save time since you won’t have to remember to make monthly payments any longer. Once your loan is paid off, you can relax and feel at ease knowing you’re good to go.
You could also use the money that used to go towards your payments on something else. Perhaps you’re saving up for your first home or a big vacation. Do you have a kid you’re making a college fund for? Maybe you just want more spending cash for dinner and movie dates with that special someone. The choice is yours.
The simplest way to pay off your car loan is to increase your monthly payments. There is a minimum payment amount you need to make every month on your loan, but you could also:
Look at your monthly expenses and see if you have any spare cash you could put towards your loan. You might choose to pay a higher amount towards your loan every month or potentially make payments biweekly. These small changes will add up and give you peace of mind in the long run.
If you need help with your budget options, you can consult our finance team or our complimentary online resources. We’ll listen to your lifestyle needs and make our recommendation.
The terms of your auto loan are not always set in stone. You could potentially refinance your car loan, so visit our finance center to talk with our team and see if this is an option for you. First, you should:
Refinancing could be a good choice for drivers with steady or improved credit. If you’ve been making your payments timely and in full, then your credit should have gone up compared to when you originally applied for the loan, which is good news for you.
If your goal is to pay off your car loan early, try to settle on a shorter term and exceed your minimum monthly payment if you can. Once your loan is paid off, you can work towards paying off other loans or making the big purchases you need.
At Genesis of Littleton, we’re happy to help our customers with their car loans or other financing questions. Drivers near Parker, Littleton, and Castle Rock, CO, can visit our dealership or contact us online today. We look forward to meeting you!
