Paid it off themselvesCar loan$40,113
5 Lessons From Paying Off a $40K Truck Loan in 34 Months
Diamond Edwards bought a new truck with no money down on an 84-month loan. He paid off his smaller debts first, put $9,000 of savings toward the truck and made principal-only payments to finish in 34 months.
Video by Diamond EdwardsPublished April 9, 2020Breakdown updated September 15, 2026
Key moments
“5 Tips to Paying Off A Car Loan Early - How I Paid $40K in 34 Months” by Diamond Edwards. We didn't make this video; it loads from YouTube when you press play.
Where Diamond started
Diamond Edwards paid more than $40,000 for a brand-new truck with no money down on an 84-month loan, and the payment of more than $500 a month got old quickly. Paying off the loan early became the top priority, and the experience started a push to get completely out of debt.
What Diamond did
- 1
He starts with the mistakes to avoid when paying off a vehicle early.
- 2
He looked at selling the truck before deciding to keep it and pay it off.
- 3
He picked a payoff method, clearing his smaller debts first, and committed to it.
- 4
He found extra money, including $9,000 of savings he put toward the truck.
- 5
He made principal-only payments so extra money went straight to the balance.
- 6
He stayed on track until the loan was paid off in 34 months.
What you can learn from it
Decide whether to keep the vehicle
One of his five tips is that selling may be an option. Comparing a sale with years of payments is a reasonable first check before committing to an early payoff.
Pick one payoff method
He chose a method and stuck with it. The CFPB describes two common approaches: the snowball, which pays the smallest debt first, and the highest-interest method, which saves money over the long term.
Ask how extra payments are applied
The principal method only works if extra money actually reduces principal. The CFPB says auto loan payments generally go to fees first, then interest, then principal, and borrowers may be able to ask their lender to put more toward principal.
Check the contract for a prepayment penalty
Before paying a car loan off early, it's worth reading the contract. The CFPB says the contract and state law decide whether an auto loan can be paid off early without a penalty.
A small score change is possible
He says his credit score dropped a few points after payoff, which he saw as minor. The CFPB notes that positive payment history may keep being reported after a loan is paid off and closed.
Before you copy this path
Auto loan contracts differ in how they apply extra payments and whether they charge prepayment penalties, so this exact approach may not fit every loan. The creator's own description says the video is for entertainment and recommends professional help for financial matters.
Watch out: It needs a steady monthly budget, and nobody negotiates for you.
Build your own payoff planCommon questions
Is there a penalty for paying off a car loan early?
It depends on the loan. The CFPB says the contract and state law determine whether an auto loan can be paid off early without a penalty, and the contract and Truth in Lending disclosures are where to check.
Source: consumerfinance.govDo extra car loan payments go to principal?
Not automatically. The CFPB says auto loan payments are generally applied to fees, then interest, then principal, and borrowers may be able to ask their lender to apply more to principal after checking their loan documents.
Source: consumerfinance.govWill paying off a car loan early hurt my credit score?
Score changes vary from person to person. The CFPB says positive payment history may still be reported after a loan is paid off, even after the account is closed.
Source: consumerfinance.govSources
By DebtCheckUSAEditorial Team. This is our summary of a video we didn't make, and nobody paid us to include it. It's one person's experience, not financial, tax or legal advice. Advertiser disclosure
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