Car Loans are generally open ended in Canada. What I mean by this is that a Canada Car Loan contract can be paid early, anytime, with no penalty to do so. For example, if you have a 60 month car loan and you decide to pay the loan in full after 30 months, than you would only pay the interest up to that 30 month point. You would not be responsible for paying the full 60 months of interest at that point. On a Car Loan in Alberta you will also have the option to make lump sum payments or extra payments towards the loan. In this case your monthly payment will always stay the same, with any extra payments being applied directly towards the principle. This will bring the loan down in term and ultimately bring down the cost of borrowing(interest on the loan). When you have bad credit car loan in Canada it is certainly beneficial to make extra payments. These extra payments, when done properly, can lower the interest significantly, thus bringing the overall car loan to manageable rate. I have experienced many clients that will take their yearly tax returns or bonuses, and put them towards their loans. This is a very wise decision and can benefit, both their loan, and their credit scores. How it benefits the credit score is it will bring down the amount owed on the loan, so that when it reports to the bureau it will show the borrowed money as a lower amount. It is certainly possible to reduce a 60 month term to 48 simply by making a little extra payment per month.
It is important to remember that when you have a Canada Car Loan you are borrowing money from the lender. It is always going to be a wise decision to pay back the lender as fast as possible to reduce the amount of money its costing in interest.
When it comes to buying out a Car Loan in Calgary early it is important to know that Calgary Auto leases may not have the same allowances. Leases can be closed loans. This being said, their are Calgary auto loan dealerships that do offer open leases
just my 2 Cents
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