How to Pay Back Your Car Loan Faster

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Make your wheels your own and save hundreds of dollars by paying off your car loan early.

Step 1: Cut spending
Set up a budget. Examine it carefully to find areas in your expenses where you can cut spending and use the extra money to pay off your car loan.

Step 2: Keep expenses low
Keep your basic living expenses low. Buy food in bulk, use coupons, grow your own vegetables, bring your lunch to work, and buy supplies at discount stores.

Step 3: Make more money
Get some extra income by working more hours or a second job.

Step 4: Pay extra each month
Pay an extra $20 to $25 each month; added up, this should be about an extra payment or two each year.

Step 5: Maintain vehicle
Keep up with vehicle maintenance to preserve resale value and help avoid future repair costs.

Did You Know?
Following a massive recall, Toyota dropped its average finance charge to a historical low of 1.9 percent in 2010.