Submitted by Dynasty__93 t3_1282a2y in personalfinance
StoopitTrader t1_jegzfvz wrote
I thought it was very rare for new car loans to have any sort of prepayment penalty. I've heard of it more on buy here pay here loans. I found this:
https://www.experian.com/blogs/ask-experian/how-to-avoid-paying-prepayment-penalty/
"Thirty-six states and Washington, D.C., let auto lenders charge prepayment penalties for loans with terms of 60 months or less. Lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer."
I would definitely try to pay this sooner and avoid a lot of the interest. Taking the loan down to 30 months would save you a ton in interest unless you loan rate is very low. As others have stated, read your loan contract but I would be surprised if there's any penalty.
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