![]() ![]() It’ll also tell you how much interest you can save over the life of the loan in the process. It’s also easy to work the calculation in reverse to figure out how much extra you need to pay to shorten you loan by a certain length of time. FAQ: This Auto Loan Early Payoff Calculator can tell you how much faster you can pay off your loan by paying a bit extra every month.That way, you have some flexibility in case you’re short of cash at some point. Or maybe you’re thinking about buying a vehicle with a long-term loan for the lower minimum payments, but actually intend to pay it off a year or two sooner and are wondering how much extra you’d have to kick in each month to do that. So maybe you’ve bought a car with a long auto loan and now you’re how much faster you could pay it off by paying a bit extra each month. FAQ: In fact, you may be surprised by how small the difference in monthly payments can be between a six-year and a seven-year auto loan, due to the additional interest costs over the life of the loan.Interest charges pile up over time and with the way loan amortization works, each additional year you add means disproportionately higher interest costs over the life of the loan. Unfortunately, those affordable monthly payments cost you money over the long run. FAQ: Longer loans mean a lower monthly payment and a more affordable vehicle. ![]() A good used car can easily run $10,000 or more. Longer loans mean lower monthly car payments, which is important when you’re looking at $25,000 or more for even a basic new vehicle. Auto loans of five, six, even seven years are increasingly common – because the lender is confident the vehicle will keep running that long. With cars lasting longer, lenders are willing to make longer auto loans as well.
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