How to Pay Off a Car Loan

April 20th, 2020 by

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When you purchased your new Mazda or used vehicle near Charlotte, Lincolnton, or Gastonia, NC, did you use financing and get a vehicle loan? If you did, then you’ve been paying off the car for a few years now. Now that your loan is almost paid in full, you might be wondering how to fully pay off your car.
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4 STEPS TO PAYING OFF YOUR CAR

  1. Determine your payoff balance: The final account balance may not be an accurate representation of what you owe to officially pay off the vehicle. There may be interest charges, fees, or other charges applied to your loan, so you’ll want to find out what the payoff balance is from our finance department or your lender.
  1. Turn off automatic payments: If your car payment is made automatically each month, be sure to turn this off, so you don’t keep paying for the completed loan.
  1. Alert your insurance company: Once your vehicle loan is paid back in full, let your auto insurance company know, so they can remove your lender from your policy. This also means you can now change details of your policy, but make sure you remain fully covered in case of an incident.
  1. Wait for your title: Now that your loan is paid, you’ll get full and complete ownership of your car. Your vehicle loan lender will release your title once your final payment is processed.
  1. Make your next automotive decision: Once you have your title, you have two choices. You can keep your current vehicle or you can trade it in for a new or used vehicle. Some things to consider when making this decision:
  • Are you ready to make vehicle loan payments again?
  • Can you financially pay potentially more each month for a new car?
  • Would you like to use the money you were spending on your car payment for something else?

Once you know the answers to these questions, you can determine if it’s better to keep driving your current car or if you’re ready for an upgrade.

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Restructuring Your Remaining Car Loan

If some changes have occurred in your life that allow you to alter the monthly car loan payments you’ve been making, speak with our team of financial advisors. Working in unison with you and the lenders, it’s possible for us to adjust the payment structure of your current loan arrangement.

You can either more quickly complete the loan payments by increasing the amount you put into them each month or, if you prefer to stretch the payments out longer, you can restructure the loan to provide you with more financial wiggle room in the short term!

MAZDA OF GASTONIA CAN ANSWER YOUR FINANCE QUESTIONS

If you’d like to know more about how to pay off your car loan or what steps you need to take to purchase a new car with a trade-in, contact us online or visit our showroom near Gastonia, Lincolnton, and Charlotte.

Posted in Mazda Models, Tips and Information