How to Pay off a Car Loan Early

Pay off a Car Loan Early

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Want to pay your car off a head of time? Not too sure exactly how to do this? Read this and be on the road to no car payment sooner!

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Instructions

Difficulty: Moderately Easy

Things You’ll Need:

Account information
Checks

Step1

Gather all you car loan info. This should all be readily avalible on your monthly statement.

Step2

If you have Excel you can open an amoritization table in it By Clicking on the bottom tabs Insert>Spreadseet Solutions>Loan Amoritization

Step3

Put in your current Loan information This will help you decide how much you want to pay extra per month

Step4

Send the decided extra amount each month in, but do not send it with your normal payment. Write a separate check, and be sure to write "Principal Only" on the check so that way they just don’t apply it to your next months bill.

Step5

By doing this, you will pay off your car early and pay much less in intrest across the life of the loan.

Tips & Warnings

Be sure and Write Principle only
Even if you can only do a one time payment, go ahead and do it. Every bit helps.
Don't Avoid paying down credit cards to do this, unless you are paying a higher APR on your car loan than your credit cards.