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Erin
Staff

Erin asked about a year ago in Car Loans

Prepayment penalties

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
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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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