If you have taken out a loan from our Dodge finance department, you may be looking for ways to pay off your vehicle faster. Unless you have a penalty for pre-payment, there are multiple methods that could help you pay your car off a little bit early and save some money. Here are the top tips from the financing experts at MotorWorld Chrysler Dodge Jeep® RAM.
Opt for a Shorter Loan Term
This is something you can do when you initially apply for your loan. The average loan term these days is creeping toward five years, but you can opt for a shorter term. A three- or four-year term means higher monthly payments, but your car will be paid off faster.
Round Up Your Payments
Let's say that you owe $450 on your car each month. Round that up to $500 and you'll start to pay off your vehicle a little faster. You can also round up and add some predetermined amount, like $200, to your payment each month to pay off your loan even faster.
Get Rid of Unnecessary Add-Ons
Your car loan payment may include payments for some add-ons, like GAP coverage or a warranty. If you don't need them, you might be able to get them taken off, reducing the total that you owe. You might even get a refund for some of these, and you can put that refund right back into your next car payment.
Refinance Your Loan
If you think that you can get a better interest rate on your loan now than you could when you first financed it, refinancing your loan could help you pay off your car faster. You may also be able to adjust the loan term while you do this. A lower-interest loan with a shorter term will help you pay off your new Dodge car faster.
Visit MotorWorld Chrysler Dodge Jeep® RAM for Financing Advice
If you're ready to finance a vehicle, visit our Dodge dealers in Wilkes-Barre, PA. We'll answer any questions that you have about our new car lineup and the latest financing offers.
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