Wondering how to pay off a car loan faster? This is the question many buyers ask themselves when initiating the financing process, and fortunately, there are some ways to shorten your financial burden. Once you’ve signed your next Lincoln loan, here are three things you can do to pay off your car faster.
Sign a Shorter Loan
The simplest answer to this question is to simply sign a shorter loan. Most car loans are between 36 and 60 months (three to five years) and are usually negotiated in intervals of 12 months. If you can swing the increased monthly payments, then signing a loan as short as 24 months can have you paid off in two years instead of five.
Refinance Your Loan
If you feel as though it’s taking forever to pay off your loan, or you are dissatisfied with the loan terms, then drivers can refinance the loan to get more agreeable terms. Consider what changes you’d like to make to your loan’s terms before contacting your lender to initiate the refinancing process — you may be able to secure vastly better loan terms if you’re successful.
Round Up Car Payments
If you can spare the extra money, rounding up your car payments to the nearest hundred can cut months off your overall loan period. This method does not require approval from your lender, and it can result in surprising progress in paying off your overall loan balance over time. No matter how much extra you add to your monthly payments, a little extra can go a long way during the financing process.
Learn How to Pay Off a Car Loan Faster at Our Finance Center
Before you can start paying off your loan early, you’ve got to sign one first! Take some time to get your credit and documentation in order, then stop by Woodhouse Lincoln today to find your perfect next vehicle and initiate the Lincoln financing process.
Categories:
Finance