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How to Pay Back Your Car Loan Faster

Make your wheels your own and save hundreds of dollars by paying off your car loan early.

Instructions

  • Step 1: Cut spending Set up a budget. Examine it carefully to find areas in your expenses where you can cut spending and use the extra money to pay off your car loan.
  • Step 2: Keep expenses low Keep your basic living expenses low. Buy food in bulk, use coupons, grow your own vegetables, bring your lunch to work, and buy supplies at discount stores.
  • Step 3: Make more money Get some extra income by working more hours or a second job.
  • Step 4: Pay extra each month Pay an extra $20 to $25 each month; added up, this should be about an extra payment or two each year.
  • Step 5: Maintain vehicle Keep up with vehicle maintenance to preserve resale value and help avoid future repair costs.
  • FACT: Following a massive recall, Toyota dropped its average finance charge to a historical low of 1.9 percent in 2010.

You Will Need

  • Focus and motivation
  • Budget
  • Creativity
  • Extra income
  • Car maintenance
  • Cash (optional)

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