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Prepaying Car Loans

Senior Contributor

Prepaying Car Loans

I just recently purchased a 2007 auto. I have 67 payments left. I have gap insurance through the life of the loan. Including all the bells and whistles the loan is 9.79% $474 per month. While I might be able to beat this rate by investing the approximately $25K left on the car loan I am thinking about prepaying this loan. I could easily rid myself of this paper by the end of 2008. Would I benefit by paying this car loan off early or should I just keep making the payments? Pay the 24+K left or pay off the loan to the tune of nearly $32K over the life of the loan? TIA.
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2 REPLIES
Moderator Emeritus

Re: Prepaying Car Loans

I would focus more on saving money here than worrying about your score. Pay what ever you can on principle and continue making payments on whatever is left.
Message 2 of 3
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Senior Contributor

Re: Prepaying Car Loans



Tuscani wrote:
I would focus more on saving money here than worrying about your score. Pay what ever you can on principle and continue making payments on whatever is left.



Thanks for your input Tuscani.
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