Pay it off?

84 months at almost 5%, you would be an idiot not to pay it off early and save thousands.

 

If someone needs 84 months to pay of a vehicle they have no business buying it in the first place

 

I think it's ridiculous that banks even offer that. It should be criminal. Even with a relatively low rate, do you realize how much the finance costs add up to over that long?

 

Not necessarily..........depending on what "early" is. If "early" meant 12/24 months, then you wouldn't be paying all that much in interest; however, if "early" means 72 months, then that's a butt-load of interest. You have the cash now, the economy's good now (job security), may not be in 2021 (post election, especially if one of these socialist idiots get elected)........PAYOFF the loan.

Whitepony, if you do pay it off and keep making payments back into your savings account (or some other interest making account) how long will it take to get your $11,000 back? You obviously can handle the payments now...........so just keep making them to yourself...........that's a great feeling.....and peace O' mind!

 

Yes, after additional info has come to light, I say pay it off in full as well.

 

Early meant 1-2 years. I’ve had it 9 months

 

In some cases they were forced to sell when confronted with job and home loss. It seems to be lost that millions of people lost their jobs in the last downturn. So it's rich when people say well if those poor fuckers didn't sell. The next downturn will be no different except the FED has no ammo.

Not trying to time the market, but anyone who thinks this will go on forever is going to be mistaken. There will be another recession or depression at some point. The only reason the market keeps going up is corporate buy backs and cheap money.

 

Well the dude at work fresh out of college just bought a $200k house with basically nothing down. I mean never mind the other $90k he has stacked up in debt because he's going to win with money. The other day he was complaining that he's tapped out.

Banks are back at it again

 

Pay it off and just start putting that payment every month back into savings on top of what you already put in.

 

Eh the stock market is actually pretty damn healthy but the housing market is a ticking time bomb. After it blew up last time, all the boomers realized they could get cheap real estate to pad their portfolios and the investment/speculative buying is pushing the younger generations out of the market. Something is going to have to give in the next 5-10 years because it's pushing rents out of control.

As for OP, the general rule is that if you can make better use of the funds (e.g. pay off higher interest debt or invest at higher return) then do that but if you don't plan to do either of those, pay it off early if you can.

 

^^^^...that.They can get away with it and the uniformed and unwise will bite. They are making money so and that’s what it all comes down to.

My story: I bought my 19, used, with under 2k miles. The last guy, I was told from the sales guy, had remorse and wife pressure to sell it back, his loss was my gain. He paid the drive off the lot depreciation for me and I got a not even broken in yet truck for 4K off a new one. I did 48 months as Capital One was giving me 3.9% with either 36 or 48 months. I’m on schedule to pay it off currently at 27 months. I have the option to pay the 48 mo. payment if I have a rainy month if necessary but I pay substantially more than that obviously.

 

Yes. But if you have at least 11 grand “sitting in the bank” and are not sure what to do with this situation then you need to get some financial advice from professionals, who may or may not drive Tacos.

 

It’s everywhere. Just look at the corporate debt levels

 

ill finish paying mine off next month. so 6 months total. I did the dealership financing and got a terrible rate 6 ish and i have 800+ credit. Knowing that i would pay it off very early i didnt argue. im sure putting down 12k on trade and another 10k in cash didnt help.

 

Yup, you guys are right. Just never save or invest because of what might happen.

Sure, some people were forced to sell. But if you base your investment decisions on that principle, you will have zero chance of ever retiring.

 

Any Wealthsimple users in this thread ?

 

One of the reasons why I think the Tesla story is interesting.

Mountains of debt
Basically no profits
Stock price is insane

 

^this^ I work for a big name fintech company and I see all kinds of high yield savings accounts paying up to 3-4% quarterly. Of course you have to leave a good chunk of cash in there for usually 40-60 months but we’ll worth it if you have the cash.

 

any recs for a better savings account? i just realized i'm also sitting on a good chunk of change in my bank but need immediate access to it because i might be going through a career change in the near future

 

Note that the $1.45/day interest is for the first month only.
After that, your daily interest will go down.
You probably know this, but you only pay interest on the unpaid principle, which is going down every month.

The longer you are into the loan, the less interest you save by paying it off early.

After three years, your daily interest would be about 90 cents/day...