I paid $32,000 for my vehicle on a 72-month loan at 8 percent. I paid $20,000 on it earlier and now owe $8,600. I want to pay $4,000 more on the loan, which means I will be finished with the loan at the end of the year. Is this a good move or not?
While I’ve never thought it smart to take out a 72-month car loan due to the higher interest rates such loans carry and the potential for also being socked with car repairs before the loan is paid off, you are doing the right thing here in using spare cash to pay off the loan early.