Menu

Is Paying Off a Car Loan Early a Good Idea?

Tiny car with coins and finance paperwork

Is it good to pay off a car loan early? If you’ve been wondering, “Can I pay off my car loan early?”, like a lot of our Lawrenceville customers, ourfinance center is here to help. Let’s take a look at the pros and cons of paying off a car loan early, as well as how to pay off a car loan early.

When Paying Off a Car Loan Early May Be Right for You

Is it good to pay off a car loan early if you have the funds to do so? That depends on the factors below.

Paying off a car loan early is a good idea if:

  • You would like to free up money for other expenses.
  • Making larger monthly car payments won’t affect your emergency funds and other finances.
  • You would like to lower your monthly expenses to plan for a larger financial goal, such as entering retirement or growing your family.
  • You need to improve your debt-to-income ratio.

When Paying Off a Car Loan Early Isn’t Right for You

Sometimes, the question isn’t, “Can I pay off my car loan early?”, but “Should I?”

Is it good to pay off a car loan early in every case? The truth is, It doesn’t make sense for all of our Suwanee customers. You may want to reconsider if the following is true.

Reconsider paying off a car loan early if:

  • You can’t afford to make extra or higher car payments.
  • You have a low interest rate and the money you’d use to pay off your loan early could be better used to create a retirement fund or for a future financial goal.
  • You need to build your credit history.
  • Your loan agreement includes a large prepayment penalty.

How to Pay Off a Car Loan Early

If you’ve decided the right answer to the question, “Can I pay off my car early?” is “Yes,” consider doing it in one of the ways below:

How to pay off a car loan early

  • Make one extra payment per year.
  • Make Bi-Weekly, instead of monthly payments – results in one extra payment a year.
  • Round up your monthly payment to the nearest $50.
  • Do not skip a payment.
  • Refinance your car loan if you can get a better rate. With a lower rate you can afford to make higher or extra payments. 

Talk to the Finance Department at Rick Hendrick Chevrolet Duluth of Duluth

Our finance managers would be happy to walk you through the pros and cons of paying off a car loan early. We make financing simple at Rick Hendrick Chevrolet Duluth. You canapply for credit or evenvalue your trade online. We’re just a short drive away from Johns Creek. So, drop by or contact us today!

 

More from Rick Hendrick Chevrolet Duluth

  • 2022 Chevy Colorado Towing Capacity

    While the 2022 Chevrolet Colorado is technically a mid-size pickup, this beast offers performance on par with some of the biggest trucks around. For 2022, the Chevy Colorado towing capacity reaches a formidable 7,000 pounds. That’s more than enough muscle to help you take on work projects in Lawrenceville and weekend adventures in Suwanee. If…

  • What is the 2022 Chevy Blazer Towing Capacity?

    The new Chevy Blazer is a popular choice among adventurous drivers in Lawrenceville! With an available 3.6L V6 engine and a spacious cargo area, the 2022 Blazer can rise to any challenge with ease. But, how much can a Chevy Blazer tow? If you have lots of weekend toys or you’re an avid DIYer, this…

  • 2022 Chevy Equinox Towing Capacity

    If you’re impressed by the Chevy Equinox fuel economy and the fun range of colors, you might be ready to take the leap and upgrade your ride at Rick Hendrick Chevrolet Duluth. But some drivers will also want to know, can a Chevy Equinox tow? Yes! The 2022 Chevy Equinox towing capacity maxes out at 1,500 pounds. Learn…

Hendrick Vehicle Disclaimer
$849.00 Dealer Administrative Charge included in advertised price.

Advertised prices EXCLUDE options added by the dealer and displayed on the vehicle’s window sticker addendum. Please contact dealer for additional details.

All prices exclude all taxes, tag, title, registration fees and government fees. Out of state buyers are responsible for all taxes and government fees and title/registration fees in the state where the vehicle will be registered. All prices include all manufacturer to dealer incentives, which the dealer retains unless otherwise specifically provided. Dealer not responsible for errors and omissions; all offers subject to change without notice; please confirm listings with dealer. All vehicles may not be physically located at this dealership but may be available for delivery through this location. Transportation charges may apply. Please contact the dealership for more specific information. All vehicles are subject to prior sale..
 

Additional Disclaimers:

 

*APR and cash allowance vary by model. Length of contract limited. Must finance with GM Financial. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 7/5/22.

*APR and cash allowance vary by model. Length of contract limited. Must finance with GM Financial. Some customers may not qualify. Not available with lease and some other offers. Take new retail delivery by 7/5/22.

Connect With Us

AudioEye
Search
Contact
Glovebox
Search
Contact Us
Glovebox
AudioEye

$250 Off Any New Vehicle Purchase

After submitting your information, one of our representatives will reach out to you about this offer!

Limit one per customer. Offer is not valid on any price quotes that were given prior to the receipt of this offer.

Submit your information to receive this offer.
  • This field is for validation purposes and should be left unchanged.
Rick Hendrick Chevrolet Duluth 33.9641, -84.1225.