If you want to stick to the minimum installments throughout the year, supplement them with at least one big extra payment. Many people make an extra payment or two during the first few years of the loan to save on interest and pay it off sooner. Common instances include tax refund time, company bonuses or other times when you have additional, disposable income.
 
Note that if you have high-interest credit card debt, it’s best to put additional money there – you’ll save much more. And, if you’re drowning in credit card debt, Truliant can help with that too. We offer credit union auto loans, personal loans and debt consolidation loans that allow you to pay off your debt at a much lower rate, typically.

You probably agreed to the loan based on the affordability of the minimum payments. However, if you can pay a little more than these standard installments,  it's possible that you can pay off car loan early, maybe a year or two earlier. This can save you around a thousand dollars or more in your total auto loan costs.

For example, let's say you took out a $20,000 loan at 5% interest for a 60-month loan term. The minimum payment would be $377 a month, and it would cost you $22,645 at the end of the loan. You'll end up paying $2,645 in interest payments.

Now, what if you decided to pay an extra $122 a month for a total of $499 a month? You'll cover the auto loan in 36 months. The total cost will be $21,579, and you'll end up paying $1,579 in interest payments. So, by paying an extra $122 a month, you'll save $1,066 compared to making the minimum payments for the 60-month term auto loan.

Many people may not have the best credit score when they take out their car loans. As a result, they're forced to accept the higher auto loan rates. You want to work toward improving your credit score as much as possible. When it does go up, start talking to as many lenders as possible to see if you can refinance. Always check local credit union auto loan rates for a lower interest rate.

Here's another strategy for ramping up your minimum payments. Consider rounding up your monthly installments to the next $50 or $100. So, if you're supposed to pay $301.25, round it up to $350. If the monthly payment is $347.89, considering rounding up the payment to $400. It doesn't seem like much, but you can pay off car loan early by several months or even up to a year earlier. This is a great way to save money on your auto loan if you're working with a limited monthly budget.