Can I pay off my car loan early?
Usually yes, and it can save you interest. Some loans have a small early repayment fee, so it is worth checking your contract first.
Most car loans in New Zealand let you pay them off early, either in a lump sum or by making extra payments along the way. Clearing the loan sooner reduces the interest you pay, lowering your total cost of credit.
Before you do, check your loan contract for any early repayment or break fee. Under the CCCFA, any such fee must be reasonable and cover the lender's actual costs, not act as a penalty.
If your goal is a lower rate rather than clearing the loan, refinancing to a better deal is another option worth comparing.
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