What do you guys do? Mods or pay it off?

[Jonah52]

I hear the "calls" to pay it off early... Which I don't think are a wrong or right choice...

The rate is high. However, he financed $6K.. 7% on $6K is a very small amount of interest........ Paying it off early is going to save him about $300-$400 total.....

So paying it off early isn't saving him a fortune. His credit report is better off with the loan for 48 months than it is for 24.. Apparently it needs the account to beef it up anyway...

So mod or not, paying it off early isn't saving him enough to have a steak dinner and a bottle of wine with his girl at Ruth's Chris steakhouse...

If you really want to have a piece of mind, save money for the repairs. At 150k on the clock, they're coming.....

Just my $.02

Just rolled 134k haha

Thanks for your input! I agree. I could have paid cash if I really didn't want a payment, but I figured since I'm young it would be a good idea to just keep paying my $157 a month, and pay it off in 48 months, so my credit just builds. I hate using credit cards and having loans, so anything that I pay for I pay it strictly in cash. Put things i have money for on the cards, and always make my truck payment early. Just trying to set myself up.

Ball joints went about a month ago, but besides that this truck has been reliable and I've a;ready racked some miles up. I just hope I can keep it long enough with how much I drive. I really do love this one haha

And like you said interest isn'y much, and there is an an early pay off fee, so it doesn't benefit me too much to pay it off early.

 

[VA929RR]

Just rolled 134k haha



Thanks for your input! I agree. I could have paid cash if I really didn't want a payment, but I figured since I'm young it would be a good idea to just keep paying my $157 a month, and pay it off in 48 months, so my credit just builds. I hate using credit cards and having loans, so anything that I pay for I pay it strictly in cash. Put things i have money for on the cards, and always make my truck payment early. Just trying to set myself up.



Ball joints went about a month ago, but besides that this truck has been reliable and I've a;ready racked some miles up. I just hope I can keep it long enough with how much I drive. I really do love this one haha



And like you said interest isn'y much, and there is an an early pay off fee, so it doesn't benefit me too much to pay it off early.

You've got the right idea. Keep on your current path and you'll be fine. Saving is ALWAYS a good thing. However, you can't spend it in heaven and you're only young once..

Enjoy the younger years while you can. Sounds like you are already enjoying the ride. So have fun with it, make it yours and just be smart about it! It's YOUR car.. We're all on here because we enjoy out rides and want to make them unique and special to us.. Some go big... Other just do what the can and still accomplish the "fun factor"..

Bottom line.... Make the vehicle yours. We all spend a good amount of time in them. Why not enjoy what you're sitting it.... Good luck and congrats on your new toy!

WDE [emoji12]

 

[Jonah52]

Thanks buddy.

I am such a saver that sometimes it's bad! I'll save up for wheels or tires and go, ehhh well i'd rather leave it in the bank. But if I can get this thing close to how i want it before I graduate in the next year I should be golden. I'd really like to get a house within a few years of graduating, and other things too. So I hunt for deals. Like my mom and gf always tells me, you gotta treat yourself sometimes, even if it means spending a little extra.

Put almost 5k miles on her with little to no probs btw

---------- Post added at 10:23 PM ---------- Previous post was at 09:56 PM ----------
@goodinblack did this work?
@felixgun did this work? lol

 

[Goodinblack]

@Jonah52 yes lol

 

[Wake]

Put every penny (besides insurance, gas, & maintenance etc) toward the loan. Sucks, but being free & clear of the man is waaaaay cooler. JMO.

I usually go this route but over the last few purchases I don't pay off vehicles early. The money is just too cheap to borrow to try to pay it off quickly.

I bought my 07 last month, with good credit and money down (wish I didn't put anything down), my interest rate on an 8 year old truck is 2.44%. To me it just seems I can make better use of the money. Previously I'd try to pay off a car loan in 2-3 years instead of the 5 years (my record is 8 months). Now with it being so cheap I'm putting my money elsewhere. The only thing I'm missing is a title without a lienholder attached, but as cheap as I'm borrowing the money I can live with that for 5 years.

If I had a 5%, 7%, or 10% loan I'd definitely put every penny I had towards paying the vehicle off early.

 

[VA929RR]

I usually go this route but over the last few purchases I don't pay off vehicles early. The money is just too cheap to borrow to try to pay it off quickly.



I bought my 07 last month, with good credit and money down (wish I didn't put anything down), my interest rate on an 8 year old truck is 2.44%. To me it just seems I can make better use of the money. Previously I'd try to pay off a car loan in 2-3 years instead of the 5 years (my record is 8 months). Now with it being so cheap I'm putting my money elsewhere. The only thing I'm missing is a title without a lienholder attached, but as cheap as I'm borrowing the money I can live with that for 5 years.



If I had a 5%, 7%, or 10% loan I'd definitely put every penny I had towards paying the vehicle off early.

Good points. However, if he had a $20K loan, this would be great advise. Paying his loan off early will save him $400... So again, early payment isn't saving him a fortune. He could invest the $400 (he would end up saving) now and have twice as much in 4 years....

But again.. Just my $.02