November 12, 2024One-Minute Reads: Can Auto Loans Be Paid Off Early? 

Yes, in most cases, you can pay off a car loan early! Paying off your loan ahead of schedule can help you save on interest and free up your budget. However, it’s important to check your loan agreement for any prepayment penalties. Some lenders charge a fee for paying off a loan early, which could reduce or eliminate the savings you’d gain from paying it off faster. PEFCU does not charge a fee or a penalty for paying your auto loan off early. 

If your loan doesn’t have prepayment penalties, making extra payments or paying more than the minimum can help you pay off your car sooner and potentially save money in the long run. Be sure to confirm with your lender how they apply additional payments to ensure they go towards the principal.  

To find out more about PEFCU auto loans, click here: https://www.pefcu.com/loans/vehicle-motorcycle-boat-rv-loans/cars-trucks/