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Can I Pay Off My Car Loan Early?

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If your Delray Beach lifestyle has changed and you’re able to pay off your car loan early, you may be wondering if it’s possible in the first place. In many situations, it’s entirely possible to pay off a car loan early. But, is it a good idea to pay off your car loan early? In most cases, yes! Paying off a car loan early is usually a good idea. Our finance experts at Lexus of Palm Beach will go over how to pay off a car loan early and touch on when it’s a good idea for you to do so!

Paying Off a Car Loan Early – When To Do It

Paying off a car loan early isn’t right for every Lake Worth driver but there are some instances where it makes sense to do so. Learn when to pay off a car loan early below:

Is It Good To Pay Off a Car Loan Early? If These Apply, Yes:

  • All your other expenses & debts are paid off.
  • You have the extra funds without dipping into your emergency fund.
  • You want to clear your debts to save up for a larger financial goal.
  • You want to improve your debt-to-income ratio.

Is It Good To Pay Off a Car Loan Early? If These Apply, Probably Not:

  • You don’t have an emergency fund.
  • You have a low interest rate.
  • You need to build your credit score and improve your credit history.
  • Your automotive loan contract has penalties for paying it off early. 

How To Pay Off a Car Loan Early

There are several different ways to pay off your car loan early. If you ever need assistance, you can make the short trip from Palm Beach Gardens to the finance experts in our dealership and we’ll be more than happy to help. Keep in mind that you’ll want to confirm first that your lender allows you to pay off your car loan early. Once you’ve ensured that there are no penalties, here’s how to pay off a car loan early:

  • Bi-Weekly Payments: Split your monthly car payment in half and make that payment every two weeks. This method will result in you making one extra full payment every year.
  • Round Up: Many drivers like to round up their monthly car payments to the nearest $50 to pay off their vehicle quicker.
  • Extra Payments: If you have the extra funds, you can also simply make extra payments to your auto loan at any time.

If you enjoy your vehicle and you’re not ready to upgrade to a new one but you want to lower your monthly car payments, it may be worth a consideration to get refinancing. When you refinance your car, you may have the ability to enjoy a lower interest rate which could result in a decreased monthly car payment!

Get More Information About Paying Off a Car Loan Early With Lexus of Palm Beach!

If you’re confused and you want to learn more about paying off a car loan early, feel free to contact us online or visit us in West Palm Beach today for assistance!

 

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