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Posted in Auto Loans
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Sher61

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Can you pay off an automobile loan too quickly?
I took out a 4 year loan and after 14 months have it 2/3 paid off. Should I slow down or continue paying it off quickly?

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I think that is a matter of personal choice.  I just bought a car and anticipate being able to pay it off faster than the 6 year contract.  Even though this is a low interest loan (under 3%) savings accounts don't pay more than 1 to 2% and paying as quickly as possible allows the bank to loan the money tsomeone else faster and possibly at a higher rate so they'll make more money.  As long as there is no early payment penalty clause in the contract, there should be no big problem.

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