Paying off auto loan

[themack]

Sorry if this topic has been touched on already. I see a lot of threads about approvals but I’m really interested in knowing how to manage the loan once I get it. I have heard people say that you should pay your loan in double every month. What’s a good rule of thumb in paying back the loan? How can I effectively pay back the loan and incur the least amount of interest charges? Any tips or tricks?

[Anonymous]

There is only one way to pay the smallest amount of interest:

Pay the largest amount over and above the regular payment you can each month and designate the excess to "additional Principal payment". Since each payment costsists of interest and principal, and the interest rate is probably fioxed, your rate times the principal outstanding will be the interest due. Lower the principal outstanding as fast as you can and you automatically reduce the interest paid.