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
How can I pay the principal on my car loan?
Just the other day, I won a few hundred dollars on a lottery ticket I got for my birthday. I’m waiting to claim the winnings until I find a beneficial use for the money. I’m thinking of using it to pay extra on my car loan. How can I make an extra payment toward the principal of my loan?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations, it’s not every day you win a sizeable amount of money playing the lottery! And using the money for something beneficial is a great idea.
To pay the principal on your
car loan
, you can typically just increase the size of your monthly payment and the excess will go toward the principal automatically. However, policies vary by lender, and additional payments are not always accepted, so you should contact your lender before making any extra payments.When speaking with your lender, be sure to:
- Confirm additional payments are permitted.
- Ensure the excess payment will go toward the principal and is not viewed as an advanced payment.
If everything checks out and you are allowed to pay down the principal, you can:
- Make one additional sizeable payment.
- Pay half of the monthly bill every two weeks. You will have made a single additional payment at the end of one year.
- Round up each payment you make.
If you discover additional payments are not permitted or prepayment penalties make it impractical, you could modify or
refinance
the loan for terms that better meet your financial situation.Jerry
makes refinancing a hassle-free experience by enabling you to easily compare offers. Simply answer a few questions in our app, and Jerry matches you with multiple lenders that meet your needs.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
.jpg&w=64&q=75){kind=avatar}
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