🚗 Car Loans

Get out from under your car payment

Car loans are one of the easiest debts to burn down early. Here is how to do it without falling for the common traps.

Should you pay it off early?

Usually yes, if the rate is higher than what your savings earn and there is no prepayment penalty. Our guide on paying off a car loan early walks through the math, and the car loan payoff calculator shows what an extra $50 or $100 a month does. Check your contract for a prepayment penalty first.

Lower the rate

If your credit has improved since you bought the car, refinancing your car loan can drop your rate. Just do not stretch the term so far that you pay more in total. Biweekly payments can also help on simple-interest loans.

Upside down?

Owing more than the car is worth is common. Here are 5 ways out when you are upside down, and what to do if you need to get out of a car loan you cannot afford. Curious how your payment compares? See the average car payment.

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