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Benefits of Paying Off a Car Loan Early. The bottom line is that paying off a car loan early will save you money in interest payments. Imagine what you can do with the extra money: beef up your savings account, make home improvements, save for retirement, or perhaps pay off other debts. Taking out a car loan can also impact your credit, as.
Paying extra on your auto loan can save you money as long as the lender applies the payment to the principal of the loan. To make sure this occurs, you should always send a note with the payment telling the lender to put the payment toward the principal and not next month’s payment.
Why pay more than your car is worth when you can pay off your car loan early?. the term of your loan because you'll end up paying the same principal and a lot more.. By the way in the fall I may be in a position where I will be unemployed.