PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can you make principal-only payments on a car?
I want to pay down my car loan faster, but I'm not sure if I can. My mortgage allows principal-only payments. Does my car loan allow this?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
If you want to pay your
car loan
more quickly, making principal-only payments is always a great idea. This is the money that you pay solely to lower the price of principal on the loan, meaning it reduces your final price of the loan. A vast majority of lenders allow you to make principal-only payments with no limit to how many you make over the life of the loan. However, some lenders may levy
prepayment penalties
if you pay the car loan off early, meaning that extra principal-only payments aren’t always the best move.If your lender has no prepayment penalties, you can make as many payments as you want. If your lender has prepayment penalties, you could end up paying more.
It’s smart to find other ways to save money, as well. One of those ways is with your car insurance. Don’t overpay. Instead, download the
Jerry
app to compare dozens of quotes from some of the most reputable insurance carriers in the industry.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies