financeman

Use the money you've be spending on payments to save for the G's replacement. Paying cash is a good feeling. (though a poor investment)

Almatti

As a mortgage Finance man myself, I couldn't agree more with this comment. If you have debt at "cheap" interest rates (0%, .9%, 1.9% etc)....which is lower than or close to what you could earn on the money left in the "bank" (CDs, ) or Bonds or equity / stock investments or better yet, paydown a more expensive debt like a mortgage, credit cards, than you would be Foolish to put that money toward Car payments for the sole sake of getting rid of car payments. Makes no economic sense. The car keeps going Down in Value - a depreciating asset the moment you start it up from the Dealer's lot. Same goes for you Leasors out there: You should not put down Capital Payments to reduce your monthly payments. It never or rarely, ever equated to a dollar for dollar savings even with the slight discount and if the car is totalled or stolen, your insurance will payoff on the depreciated value not covering your Cap Cost payment.

matchan

Certainly a good feeling. I paid off my bimmer in 1 year (7% apr) with leftover student loan money (3.5% apr) a decade back.

With the G, I got a 2.99 % APR, so I paid 30% and financed 70%. Not in a real hurry to pay it off. Of course, I got it 6k under MSRP, so the depreciation wont be as bad as the bimmer (Paid Full STICKER, got it immediately after graduation!)

Right now the economic conditions are ripe for investment in the technology sector. Use any leftover monies to invest in stocks/mutual funds/high yield savings etc. Pay off the G at your own pace, hopefully sooner than the term of your note..

BKG37X

Also on pace to pay off in a year, 5% interest sucks.

Bo2point0

I thought car payments and interest is set on a fixed interest.

As in, if you pay it off in 6 months or at the 3 yr minimum monthly payment

You still have to pay that calculated full amount.

I got 0.9% apr and I have enough money to pay it off tomorrow but i choose to not because if i pay it now or next year they will still get the same amount of money.

Am I wrong about this?

Djfarhan

isnt it a great feeling!

YouTube - ‪Alex Gaudino ft. Kelly Rowland - What A Feeling (Nicky Romero Remix)‬‏

SimpsonTide985

Feels good man

Almatti

Bo2: I think your wrong about that. Interest on a car loan as far as I know is comparbale to interest on a mortgage loan: you pay interest on the Unpaid principal balance (the balaance of the loan). Payments are calculated using a fixed rate method say 1% per annum over 4 years, so the amount of interest paid each month will vary downward as you make payments over the course of the loan term. Som if you prepay early, there should be No Interest Charge for remainder terms. Check your Loan Agreement.

BTW, paying off .9% loan may not be the right thing to do......see my earlier post about paying off debt with cheap interest rates. You'd be better off to put that money into retiring higher interest debt - like a mortgage or other credit cards, etc....than paying off cheap interest rate debt by taking money Out Of The Bank....

2009g37xs

Almatti speaks the truth... Congrats on on bring car note free

Spathic

Congrats!