- 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
- Extra income
- Car maintenance
- Cash (optional)