Can I Pay Off My Car Loan Early to Avoid Future Interest?

Woman sitting in drivers seat


Does paying off a car loan early avoid interest? Paying extra each month takes focus and dedication, but eliminating debt faster is a great move when it comes to your financial hea;lth.

If you’re curious about how paying off a car early could benefit you, read the guide below for tips fro, the finance experts at McGrath Acura of Westmont:

Should I Pay my Car Off Early?

Naperville drivers focused on saving money should consider paying off a car loan early. If you’re in a position to pay more on your auto loan each month without using credit, the benefits are definitely worth the cut out of your disposable income. That takes discipline, but remind yourself how much you can save in interest! If you need the motivation, our finance center team can help you calculate the exact dollar amount.

However, if your primary concern is raising your credit score, it’s actually a better idea to keep your loan open for the full term. When it comes to credit score, what happens when you pay off a car loan early? Your available credit will drop abruptly when you pay a loan off early. That can ding your credit score, because 30% of your score is based on credit utilization — the percentage of your credit limit that you are currently using.

Does Paying Off a Car Loan Early Avoid Interest?

Yes, you can save a bundle interest by paying off a car loan early. The sooner you wrap up your loan, the sooner interest stops accumulating! Paying early can be helpful if you’re considering a trade-in, because you’ll have more money to put toward a down payment on your next car. We’re happy to answer questions about trade-in value, and whether leasing vs. financing your next Acura vehicle is the best path for you.

Explore Car Lease and Finance Options at McGrath Acura of Westmont!

Visit us in Westmont to discuss your financial goals with a finance expert, and check out all the ways Naperville drivers can save money with us. You can even find more finance features to help you such as how to remove a cosigner from a car loanWe’re proud to serve local drivers with new vehicle lease and finance specials and incentives!

More From McGrath Acura of Westmont

  • 2021 Acura RDX Interior

    Whether you opt for the Standard RDX or the top-tier Advanced Package RDX, your new 5-passenger Acura interior will cater to the most seamless drives throughout Westmont and beyond. From advanced driver assistive features to keep you in greater control, to comfort and convenience plus-ups that invite you to settle in for long weekend drives,…

  • 2021 Acura RDX Colors

    The 2021 Acura RDX is catching eyes on the roads from Naperville to Elmhurst due to its sporty exterior and stunning color options. Better still, you can personalize their new Acura RDX with packages like the A-Spec® Package, complete with larger wheels and sleek accents. Whether you’re looking for a sporty and contemporary looking luxury…

  • 2020 Acura MDX Technology Package

    What is the Acura Technology Package? Unlike other car manufacturers, Acura organizes their model features into packages, with available drivetrains, instead of trim levels. This allows Naperville drivers to easily find the Acura model with the performance and features that suits their needs. The Acura MDX tech package allows you to choose between standard front…

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

630-323-8200

Call Now

400 East Ogden Avenue • Westmont, IL 60559

Get Directions

Today's Hours:

Open Today! Sales: 9am-8pm

Open Today! Service: 7am-6pm

Open Today! Parts: 7am-6pm

McGrath Acura of Westmont 41.810947, -87.965787.