You can budget for your car payment by using a car loan payment calculator. It may be easier for you to pay the same amount every month. However, it is best for you to try to pay your car loan off early. There are several things that you can do to pay your car loan off early.
Pay Half Your Payment Every Two Weeks
This may seem like a waste, but you may be able to pay your car loan off early if you make two payments instead of one. You will end up making 24 payments a year instead of 12. Here is an example of how making two half payments per month can help you save money.
You have a loan with a 60-month term. The loan is $10,000. If you make two payments, then you will be able to pay the loan off in 54 months instead of 60 months. You can also save money on interest.
Refinance Your Car Loan
The interest is one of the things that stops people from paying the loans off in a shorter amount of time. If your credit score has improved since you got your car loan, then you should consider refinancing it. You may be able to get a lower interest rate.
Never Skip Payments
Your lender may give you the option of skipping a payment once a year. It may be tempting to do this. However, if you skip payments, then it will take you longer to pay off your loan.
Put Your Tax Refund Towards Paying off Your Car Loan
You may be tempted to spend your tax refund on a shopping spree or vacation. However, it is best to put the tax refund towards paying off your car loan. You will be able to pay the loan off sooner.
If you need help with a car loan payment calculator, then you can contact Canada Auto Experts.
