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Erin
Staff

Prepayment penalties


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Do car loans have prepayment penalties? I want the flexibility to pay it off early if I can.

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David R Hanson
FiLife Contributor

Hi Erin,

I have not heard of a car loan from a major provider having a prepayment penalty. By law, your signed loan documents would need to disclose such a provision. If you have lost track of those, your lender should be able to provide you with a copy.

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