Can I Make Extra Payments on My Car Loan?

David Majedi

Mar 21, 2024

Can I Make Extra Payments on My Car Loan?

Quick Answer

Can You Make Extra Payment on a Car Loan? Yes, you usually can make extra payments on a car loan. In fact, doing so can save you a lot of money by reducing the amount of interest you pay on your vehicle purchase.

There is no denying that interest rates can make the purchase of a car costly, and depending on your unique situation, paying off your car loan early can save you hundreds or even thousands of dollars. If you have recently come into money, you might be wondering, can I make extra payments on my car loan? In most cases, you absolutely can, and if paying off your car loan early is a goal, you should consider doing so.

At Autorama, we are the used car dealership Toronto residents turn to when looking for the best selection of used cars for sale. We are committed to helping our customers drive cars they love at prices that suit their budget. In this post, we walk you through why making an additional payment on your car loan is a smart move that can save you lots of money.

Can I Make Extra Payments on My Car Loan?

Making extra payments on your car loan is always an option. However, you’ll want to review the terms of your car loan and understand how extra payments are applied. Either additional monthly payments or occasional lump sum payments can go a long way towards helping you pay off your loan early and can help you to save lots of money on interest. If you can do so, making additional payments towards your car loan can be a rewarding choice.

Should I Consider Refinancing?

If you are looking to pay off your loan faster, refinancing could also be worth investigating. If your credit score has improved since buying your car, you may qualify for a lower interest rate. In turn, you can use your lower interest rate to help you pay down the balance of your car loan faster and make the overall purchase of your vehicle more cost-effective.

See our post, Should You Refinance Your Car Loan? What You’ll Want to Know, for more information or refinancing and discover if this is the right solution for you.

At Autorama, we are always here to help you find an affordable used car. Contact a member of our team today to discuss your unique circumstances, and let us help you find a car that suits both your budget and lifestyle needs. 

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David Majedi

David brings a decade of experience to his role as Finance Manager at Autorama. Having served a diverse clientele with unique financing needs over the years, he has gained comprehensive knowledge of the market and forged created relationships with all lenders, including banks and private lenders.

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