Paying off debt early is often seen as a wise financial move. But when it comes to your car loan, is early repayment always the best choice? While becoming debt-free sounds appealing, it’s essential to understand both the benefits and potential drawbacks of paying off your car loan in Canada ahead of schedule. In this guide, we’ll walk you through the pros and cons of early payoff, explain how car loan interest rates work, and help you decide whether it's a smart financial move—or a costly misstep.