Quicker you pay down the loan the less interest will be added on. So for and example if you loan is 15k and you save the money to pay it off in 12 months and do it as a lump sum after 12 month you would have paid interest on the 15k about. Now lets say as a example you are banking 1.5k/mth even in a low interest account ~1-2%/yr but paying 8+% on the loan you are losing the difference. If you take the 1500 and slap it on the loan you now have it pay down that much and when the interest is calculated (most likely a daily calculation) it down with the lower balance so less interest is charge.
Example only numbers are not correct;
15k @ 8% may be $200 interest
13.5k (1500 extra payment) @ 8% may be $150 interest per month
Now compound that extra payment over 12 months and you would be cutting you interest by a decent amount then bankin the money and putting a lump sum down.
Also keep in mind you loan agreement has to allow over payment and early buy out so confirm that before signing. And let the loan run at least a year to build your credit even if you have the money to pay it out. Most financial company's like to see repayment history on your credit not just getting a loan an paying it off in 3months that meaningless for building credit.
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