I have $10,000 left on a 6 year car loan at 7%(2016 Elantra), and $50,000 in an Ally savings account. I have a job and $25000 a year in passive income coming in. Do you think I should payoff the car loan from my savings account? Thanks.
I have $10,000 left on a 6 year car loan at 7%(2016 Elantra), and $50,000 in an Ally savings account. I have a job and $25000 a year in passive income coming in. Do you think I should payoff the car loan from my savings account? Thanks.
I have $10,000 left on a 6 year car loan at 7%
7%? Good grief! Yes, pay that off. Or refinance at a regional bank for 2.5% or less if you want.
Since you have passive income it's probably ok to use $10K of your savings to pay off that expensive loan. You'll be left with 40K to tide you over if the job goes away.I have $10,000 left on a 6 year car loan at 7%(2016 Elantra), and $50,000 in an Ally savings account. I have a job and $25000 a year in passive income coming in. Do you think I should payoff the car loan from my savings account? Thanks.
I have $10,000 left on a 6 year car loan at 7%(2016 Elantra), and $50,000 in an Ally savings account. I have a job and $25000 a year in passive income coming in. Do you think I should payoff the car loan from my savings account? Thanks.
I would pay off a 3% loan. Actually, we don't believe in paying interest period. The only loan we'd take is a 0% loan. The only way they can get you is if you don't pay on time.
Yup. I have had exactly two car loans. One right out of graduate school when I was young and stupid. I really hated that thing. Then one maybe 40 years later where Mazda offered me $2500 to finance an RX-8 with them. As you say, no brainer. I took the loan, waited for the title paperwork to get through the state bureaucracy, a couple of months. then I paid it off.... Financing never ever entered in to the equation on any aspect of the cars I decided on, EXCEPT in order to secure an additional credit, as both were offered with a $500 credit on the purchase if I financed through the auto makers credit. $500 credit, ... No brainer.
I just paid it off. I feel alot better now. Thanks for the advice!
.... As you say, no brainer. I took the loan, waited for the title paperwork to get through the state bureaucracy, a couple of months. then I paid it off.
One thing I was told by the delaer F&I guy was that it is best to wait until the title issues and is mailed to you. If the lender tries to release a lien on a title that is still working its way through the system, things can get screwed up. So like @pb4, I also made a couple of months' payments while waiting for the title. So that's a caution for anyone else who runs across this kind of opportunity.I've done that a few times.... got a nice credit at closing for financing... make a couple months of payments and then paid it off.
yes. with no debt all things become possible.I have $10,000 left on a 6 year car loan at 7%(2016 Elantra), and $50,000 in an Ally savings account. I have a job and $25000 a year in passive income coming in. Do you think I should payoff the car loan from my savings account? Thanks.
7%? Good grief! Yes, pay that off. Or refinance at a regional bank for 2.5% or less if you want.
Pay it off and resolve to never again buy a car that you can't pay cash for.
That's just not possible for everyone, unfortunately.