How to Get Rid of a Car Loan

Video Transcript

"This is financial adviser Patrick Munro talking about how to get rid of a car loan. Getting rid of a car loan means taking on a car loan that is not going to over burden you going forward. You need to buy a car that is affordable to you, many car dealers will sell someone a car that is not affordable to them and eventually the car is repossessed and comes back to the dealership. It's important for you to be aware of the car that you are buying, put down a significant down payment on that car because that helps you have some equity in that car in the very beginning. And the way to get rid of it is to make the payments on time. Normally car loans are for thirty six months, forty eight months sometimes sixty months and beyond if the car is a luxury car. But depending on what your focus is you can make extra payments on the car and this will retire the debt on the car quicker so that it will become your car free and clear. This is Patrick Munro talking about how to get rid of a car loan."