If you’re looking to pay off your car loan faster and save money on interest, you may be wondering what happens if you pay an extra $100 on your car loan. The good news is that paying extra on your car loan can help you pay it off faster and save you money on interest. In this article, we’ll discuss what happens when you pay an extra $100 on your car loan and how it can help you save money.
What Happens When You Pay Extra On Your Car Loan?
When you pay an extra $100 on your car loan, your car payment won’t go down, but you will pay the loan off faster. The extra $100 will be applied to the principal balance of the loan, which will reduce the amount of interest you pay over the life of the loan. Depending on how soon you pay the loan off and how high your interest rate is, paying extra can save you money on interest.
How Much Can You Save?
The amount of money you can save by paying an extra $100 on your car loan depends on the interest rate of the loan and how long it will take you to pay it off. For example, if you have a loan with an interest rate of 6% and you pay it off in 5 years, paying an extra $100 could save you over $400 in interest.
Paying an extra $100 on your car loan can help you pay it off faster and save you money on interest. The amount of money you can save depends on the interest rate of the loan and how long it will take you to pay it off. If you’re looking to pay off your car loan faster and save money on interest, paying an extra $100 is a great way to do it.
Questions & Answers
Q: Will my car payment go down if I pay extra?
A: No, your car payment won’t go down if you pay extra, but you will pay the loan off faster.
Q: How much money can I save by paying an extra $100?
A: The amount of money you can save depends on the interest rate of the loan and how long it will take you to pay it off.
