If I want to pay off an auto loan faster what should I do?

1. Should I make larger monthly payments? (about $200 more than required)





2. Send my regular payment, then send the $200 to the principle only?





What would save me more money in the long run? Or is it the same?

If I want to pay off an auto loan faster what should I do?
Depends on the loan. Some banks\credit unions won't accept a payment out of cycle. Check with your loan company and see if they have such a rule. If not, then you can do which ever option works best for you. They both work out the same. The principal pays off quicker. CONGRATS!
Reply:If your payment is $200.00 per month and you send $400.00 some of the money is applied to the interest and balance to the loan amount. Doing so will also reduce what you pay in interest as the interest is charged according the the balance. If you start this program you do not have to continue with it or you can change the "extra" amount according to you needs.
Reply:If you have a simple interest loan with an open end, you can pay down the account without being penalized. Since this is a auto loan, I would write 1 check for the monthly payment and another check stating principal reduction on the bottom. You can call your bank about every 4 months to make sure it was done right.
Reply:i would keep on with the minimum payment then just add on what extra i can pay.. so that way you will not be strapped!
Reply:you have to be carefull because sometimes there is a penalty for paying off your loan early. if their is not a penalty then any extra you pay make sure to specify that you want it to go towards the principal.