Title: Is Paying Off My Car Loan Early a Good Idea? | MagnifyMoney
Headings: Is Paying Off My Car Loan Early a Good Idea?
Is Paying Off My Car Loan Early a Good Idea?
Advantages of paying off a car loan early
Other benefits
Disadvantages of paying off a car loan early
Other downsides
When paying off a car loan early makes sense
When paying off a car loan early does not make sense
More ways to replace your car loan
FAQs about paying off a car loan early
Should I pay off my car?
What happens when you pay off your car early?
If I pay extra on my car loan, does it go to the principal?

Content: Notice the key phrase “toward the principal” — you want any extra cash to go toward the amount you borrowed, not interest and fees. You might have to give explicit instructions to your lender when you’re ready to pay off your car loan faster. Other benefits
Simplify bill paying. When paying off a car loan early, you’ll wind up with one less bill to pay. Stress less about negative equity. If you owe more on your car than it’s worth, what’s known as being upside down or underwater on your loan, paying extra to the principal means you could get rightside up quickly. Even if you don’t have negative equity, paying off the loan sooner means you’ll likely never have to worry about it. Sell or trade a car easily. Rather than have to pay off a lender first, you could sign over the title whenever you want. Disadvantages of paying off a car loan early
It could hurt your credit if you pay off a loan early.