There are several things you can do to save a little extra money on your car loan, including paying your loan early each month or paying a little more each month toward your balance.

Take a look at this helpful video from Ford to see a detailed explanation on how to calculate the finance charges on your simple interest loan, as well as steps to keep these finance charges to a minimum.

Simple Interest 101

Payment Habits Affect Principal Interest

Paying more than your normal payment each month, or paying your bill early, can help your principal balance go down faster, thus saving you from incurring extra interest on your loan.

Paying Late or Less Can Cost You More

If paying early and more can help you save money, paying late or less than your monthly charges can increase your finance charges much more than they would be normally.