Did you do extra payments. Who finally owns their Tacoma?

I got a reverse mortgage car loan: They pay me interest and principal while I use the truck, and when I die they get what's left of the truck...

 

Trade-in plus cash for the remainder...love to have no payments. Mortgage on the house is more than enough monthly payments for my taste.

 

Purchased my truck and loan calculator estimated 630 dollars in interest paid over 4 year loan. Paid it off very early actual interest $160.

 

I planned on paying cash, but they offered 0% so I was more than happy to take their money for free and keep mine.

 

The more things change, the more they stay the same... I saw the same thing over and over when I was in...
Honestly though,
Nothing has changed in 35 years, predatory lenders will always be ready to take advantage of the unprepared.
And kids with no knowledge or experience or someone to look out for them will always fall into the trap.

9%? Someone should be taken to the wood shed over that! That's the exact kind of lending that ends your dealership in the newspaper!
Title and Payday loan companies are the worst!

 

And if they have any problems, they only have to make one call to get the Soldier/Airman Et al into a coming to Jesus meeting.

 

Isn’t it funny the way that the way it works. If we have the funds to pay, we usually qualify for lower interest. If we can’t really afford it we pay higher interest.
There is a lesson about delayed gratification in there.

 

If you are in a position to pay outright cash for a new taco, then you should also be in a position to finance at a low rate. Any rate lower than the annualized inflation rate, which is in the ballpark of 2% (10yr average), should be taken. That lump sum of cash today in the form of a loan is worth more TODAY than it will be at the maturity date. It's not a huge swing in terms of savings, but by not taking it, you are effectively leaving money on the table. The rational here is in the time value of money.

Lots of folks feel like debt is a scary thing, and it most certainly can be under the wrong conditions. However, in the right conditions, it's a tool that should be used.

Long story short: If your rate is under 2%, stop prepaying and start putting that money in high yield savings account or retirement fund.

 

Yeah, my truck debt Was the last debt I had besides the house.
Justify the debt however we like, no debt is better than low interest debt. Could I yield more than Interest paid ? Trust me I struggled with this.
Yes. But life, career and finances are not always predictable and a steady upslope. It’s easier To weather the unforeseen storms in life without debt. To be in debt is to be in servitude to it.

 

Yeah, even the Dave and Clark money guru types don't dismiss the psychological boost that comes from eliminating debts.

 

I put 6k down, and paid it off in under 5 months.

 

Much of it comes down to your own financial situation. To be in debt is indeed to be in servitude. You are not wrong. I guess really it's just a question of risk/risk aversion. Paying fully in cash is great, would you have made more with that 30k over the next 4-6 years somewhere else? Maybe? Maybe the stock market or your rental property tanked and $30k turned into $20k. This is where I struggle the most.

Regardless, I look back at historic index funds and trust free market pricing. If push comes to shove and you need to eliminate that car note, all you do is right a check. To each their own though.

Precisely... Again, it's up to ones own financial situation. But lets say you take out $30k to buy a truck cash. There is NO WAY that this investment is going to appreciate, it will only depreciate. If you could take an additional 30k at a rate around 2%, it really is free money. Your investments stay sound, you don't take a chunk out, and you pay the loan amount every month and don't even think about it.... OR an even worse 2008 happens, you lose your investments, and then you owe an additional 30k in car loans!!!!!lol

 

Own my truck free & clear

 

Put 50% down, I'll pay the rest off in August (11 months in).

 

Clear title since day one.

 

It also allows those of us with longer time horizons to get some cheaper positions and grow some wealth. I don't like buying at all time highs, but all time highs have to break or we never go higher. I'm sure it will be rough to go through though and hold on.

 

Put me in the camp that doesn’t like debt. Wife and I just spent the last year knocking out her student loans and my truck loan.

Having the equivalent of my truck payment free to invest and not ever having to worry about any payments is far more important to me than beating inflation.

House can’t get foreclosed on if it’s paid for and a truck that I have the title for can’t be repo’d.

 

Hate having debt. Paid cash for mine. Also have 2 motorcycles that paid cash for.

 

Can't stand debt. Paid cash for mine.

 

Damn promotion rate was 2.9% here for 60 months, damn AZ.