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How to pay off your car loan quickly

Cruising around in your very own car, wherever and whenever you please, can be an incredibly freeing feeling. But if you had to take out a car loan to pay for your new set of wheels, we’re going to share some simple tips to help you pay it off faster.

1. Build a budget

When it comes to paying off your car loan, a little bit of budgeting can go a long way. You can get a detailed snapshot of your financial situation and work out where you can cut back on expenses or change your spending habits. These adjustments make it easier to manage the repayments on your car loan and pay it off a bit faster by getting a handle on other areas of your life.

The best part is that making a budget doesn’t need to involve a spreadsheet with lots of complex formulas. Our budget planning calculator is easy to use – simply pop in some essential financial information, like your expenses and income, and the tool will create your tailored budget within seconds.

2. Set up automatic and frequent payments

Nowadays, staying on top of your repayments is incredibly simple. You can set up automatic direct debits for your car loan to ensure your monthly repayment goes through on time. No more worrying about missed payments or having your loan extended.

Another thing you might consider is changing your repayment frequency – for example, from monthly to fortnightly, or fortnightly to weekly. This can help you pay off your loan quicker and in smaller portions.

As the interest on your loan is calculated daily, switching to fortnightly or weekly payments means you’ll pay off your loan faster as you’ll pay less interest on the amount you borrowed. You can use our car loan calculator to quickly see how much you can pay off each week, fortnight or month.

3. Use any extra cash to make bonus repayments

There might be times when you receive additional cash – be it from a bonus at work, a generous tax refund or even as a Christmas gift. No matter where the extra money came from, you might want to consider putting it towards your car loan.

Our car loans allow you to make as many unlimited repayments as you like. You also have easy access to these funds and can redraw them for free if you need to pay for an unexpected expense.

4. Refinance your car loan

Refinancing your car loan can put you in a better position to pay it off sooner. This is because you’re applying for a new car loan at a lower, personalised rate and are using those new funds to pay off your existing car loan.

Before deciding to refinance, it’s important that you know the upfront costs involved when making the switch, such as payout and loan registration fees. While these costs can be off-putting for a lot of car owners, the long-term benefit of having a lower interest rate and paying off your loan sooner can be worth it. You can always chat to your new lender to understand and prepare for the costs involved.

Learn more about car buying

Our articles can help you get on the road towards your dream car.

How to get a car loan

If you want to buy a car, then taking out a car loan can make all the difference. Learn everything you need to know about getting a car loan in our article.

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How to refinance a car loan

Did you know that you can refinance your car loan? And that there are some great benefits in doing so? We’re going to explore these and more in our article.

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What is a Green Car Loan?

There are some great options out there to help you buy an electric car. One of these is a green car loan – and we explain what you need to know in our article.

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Car loan features
  • $0 monthly fees
  • Unlimited extra repayments
  • Free redraw
  • Flexible payment options
  • No penalties for early payout

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Important Information

This is general information and does not take into account your objectives, financial situation or needs.

Loans are issued by Great Southern Bank, a business name of Credit Union Australia Ltd ABN 44 087 650 959, AFSL and Australian Credit Licence 238317. Lending criteria, limits, conditions and fees apply.

Rates current as at 9 June 2024 and subject to change.

Your loan contract will state the minimum monthly repayment amount. You can arrange with us to make repayments on a weekly or fortnightly basis.

1. Comparison rate examples are accurate for a personal loan amount of $30,000 secured loan over a term of 5 years. WARNING: Comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

2. Comparison rate examples are accurate for a personal loan amount of $30,000 unsecured loan over a term of 5 years. WARNING: Comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

3. A $200 minimum withdrawal amount applies for redraws conducted in-branch. Redraw facility is available for Great Southern Bank Personal Loan products on offer from 6 June 2017.

To view the Target Market Determination for this product, please click here.

*The rate you are offered is calculated based on your personal circumstances and credit history. A few different factors are considered, including:

  • Your credit score.
  • Information provided in your application.
  • Existing loans.
  • The loan amount and your perceived ability to repay the loan.

Your personalised rate won’t be confirmed until you receive an offer from us (if approved) and is subject change before your loan settles.