Dear Driving for Dollars, I want to pay off my car loan early because of the high interest rate. How can I figure out how much I will save? -- JannaDear Janna, Bankrate's early payoff calculator will allow you to easily calculate what you will save if you pay off your car loan early, either by adding a small additional amount to your monthly car payment or by paying it off in one lump sum.Be sure to double-check your car loan paperwork to make sure there is no penalty for paying it off early. Lenders will sometimes add these clauses to auto loans as a way to make up for the interest they lose on a car loan that is paid off early.If your auto loan does have an early payoff fee, it still may make the most financial sense to pay it off early. Just do the math to be sure.
Dear Driving for Dollars, I want to pay off my car loan early because of the high interest rate. How can I figure out how much I will save? -- Janna
Dear Janna, Bankrate's early payoff calculator will allow you to easily calculate what you will save if you pay off your car loan early, either by adding a small additional amount to your monthly car payment or by paying it off in one lump sum.
Be sure to double-check your car loan paperwork to make sure there is no penalty for paying it off early. Lenders will sometimes add these clauses to auto loans as a way to make up for the interest they lose on a car loan that is paid off early.
If your auto loan does have an early payoff fee, it still may make the most financial sense to pay it off early. Just do the math to be sure.
Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.
Bankrate's content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate's Terms of Use.
More On Car Loans:
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
A little research could save you BIG on interest.