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Monday, October 19, 2026Updated 22:56 UTC

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Extra Car Loan Payments Save Little Unless the Loan Charges Simple Interest

Source: Money Crashers · Oct 19, 2026 14:15 UTC

Torn U.S. one-dollar bill on a white background — File photo Images_of_Money / Flickr · CC BY 2.0 · Source

The Quick Take

The gap between the two is wide. By our math, an extra $100 a month on a $30,000, 60-month simple-interest loan at 8% saves about $1,100 in interest and ends the loan 10 months early. A precomputed loan returns a... Source

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