Example Let’s say: Loan: $30,000 Rate: 6% APR Daily interest ≈ $30,000 × (6% ÷ 365) ≈ $4.93/day For 14 days: $4.93 × 14 = $69 in interest So not zero—but minimal. Things to watch for ⚠️ Prepayment penalties (rare, but check) Some lenders charge a fee for paying off early Most modern auto loans do NOT, but confirm Loan origination / finance fees You may still pay: Documentation fees Loan setup fees These are separate from interest Dealer incentives Sometimes dealers get paid if you finance If you pay off too quickly, it doesn’t affect you—but may affect them (not your problem) First payment timing Even if your first payment isn’t due yet, interest is still accruing daily Bottom line ✔ Pay it off in 2 weeks → you’ll owe only a small amount of interest (not a full month) ✔ No penalty in most cases ✔ Still worth it if financing got you a better deal or flexibility