I think it costs you less, the interests build by a month to month basis. I currently have a car loan and I am pre-paying it. It is currently a 5 yr loan with Nissan Motor Corp the current orginal loan if used the whole 5yrs would be 3000-4000 in interest for a the orginal loan of $8200. So paying it off before the 5 yr period reduces the amount of interest $$$$$$ they recieve. There is no pre-payment penalty at least not on mind. I just got my car loan at the end of this year will be paying my car off before the end of this year so I do not have to pay them this extra money. I suggest if you can prepay do so.
