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?
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.
Ask the adviser