If the interest rate on your auto loan is within that range, or exceeds it, here's why it might be a smart move to work toward paying it off early. For used cars, financing costs are steeper, with average rates climbing from 7.4% to 11%. Deciding to pay off a car loan early depends on a number of factors, but lately, rising interest rates have made it more appealing than ever. However, average interest rates have changed: Now that auto loan rates are much higher, the amount you'd be able to earn in the market wouldn't outweigh how much you'd lose to interest on your loan. "I encourage people to pay off car loans early if their interest rates are higher than 5%," says Byrke Sestok, a CFP in New York.

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Persons: Kevin Brady, Byrke Sestok Organizations: Bloomberg Locations: Edmunds, New York