nighthawk

Let me know what you think?

Pay off the 2IS (~24K) or keep the money in the banck and continue to make my $560 payments for the next 3 1/2 years....

If I pay it off then, at 24, I'll have only $2K in the bank instead of the $26K....Obviously I'll be able to save up that much faster though.

My Job is secure at least for the next 1-2 years....

What do you think?

kickin8

iTrader: (1)

Depending on your interest rate.......

If you are paying more than 6% for your loan, then you should pay it off...

llamaboiz

thing is... if you DONT have car payments, you can use that money for other stuffs like... other bills...(like modding the car) thats why i bought my car outright.

Evitzee

Do you have 4-6 months of cash as an emergency fund? If not, then keep the $24k in the bank as a cushion. A lot also depends on your interest rate.

is4fsr

Wait a minute. 3 1/2 yrs x $560 = $23520. Are you sure your pay off amt is $24K??? How much is your auto loan rate?? Seems to me it's no interest. If that's the case pay monthly.

On the other hand if your auto loan rate is much higher than your saving/checking interest rate, then pay it off.

nighthawk

APR is 6.24 and my soon to be fiance has enough to keep us going to at least 6 months if one of us were to lose our job...

ngl1145

I'd just pay it off. This way you're not paying the interest on it. If your finances are good, you'll be able to build up to that amount faster. That' will be an extra $560 a month you don't have to worry about paying.

nighthawk

I don't think its exactly 3 1/2 years...i was just giving an estimation. I've had the car exactly 2 years in May....

chrisyano

Paying it off seems to be a good choice for you right now. Of course, if you could have done so at the onset of the loan you would have saved more in interest payments. I'm assuming that wasn't an option two years ago.

passnu2

iTrader: (33)

I say go see a financial adviser...Sounds like you have some options.

jackblack7

Are you saving for a house? Have you maxed out your 401k? Roth IRA?

gsrthomas

iTrader: (1)

I honestly think you should sell the car and get a beater. No car is worth spending your entire savings on and just having $2k left in the bank. Thats just not smart at all.

I would never use up all my savings for a car. I don't care what kind of car it is.

Don't you want to buy a house in the future?

iialcii

iTrader: (3)

i would pay it off. I did after 4 months from the date of purchase. I couldnt handle the payments such PIA. Plus less stress and worries. Then you can save and mod away, or save for something else just my 2 cents.
If you dont mind the monthly payments and could use the money for something else, investments etc I go for that, otherwise no debt=

inxexisten

I always believe in paying for a car in whole...

kickin8

iTrader: (1)

if u can find a CD that pays you 5-6%, then 6.24% is not that bad.....