Financed a car last year. I want to pay it off.

[axpert989]

I financed a car last summer in which i paid a little over a third of up front and financed the rest about 7000 or so. It is something that I had terribly regretted and will never do again. It actually lead to a lot of anxiety. Back to the original question I have been saving like a mad man and want to pay it off. It is advisable to do this at this point or better to wait when I have paid it down some more (so this way I wont be totally broke.) The amount I currently owe is about $6100 interest rate is 12.99.(a bit on the high side) I believe I have about 40 payments left. Thanks for answering this has a been a huge problem/issue and I just been looking for advice.

[gbftl1]

Pay what you can but don't put yourself in the position to be in a bind.

[bahamacek]

Try paying more on your payments so it goes to the pricipal and it will come down quicker so you can afford paying it off.

[skcs11]

pay it off, then you save by not paying any more interest

[rssr27]

If your worried about being broke after paying it off, just make double or triple payments, and demand the extra be put only on the principal and none for interest. This is your right. The regular monthly payment will have the normal interest taken out, but all extra pay at that time should be credited to the principal. You can save plenty that way.

[smile2besweet]

The sooner you pay it off, the less in interest you will pay.

[winter_jc]

You should do whatever you feel less anxiety about. From a strictly numbers standpoint you should pay off the whole thing now, but in financial planning you personal feelings are perfectly valid to consider. If you would be fretting about not having any more savings then its not worth the extra $100 or so in interest you would save. I would definitely pay off at least several thousand of the car but for the rest do whatever is easier on your mind.

[n_moritz]

First of all don't regret putting alot down, it was a financially smart choice, nowadays everyone finances WAAYYY too much and end up paying 30,000 for a 20,000 car, you obviously are doing something right.back to your question.....Well, the simple way to look at it is, whatever you pay off now you will not be accumulating interest on for the term of the loan.I would recommend if you don't wanna spend all the money now, at least make double payments, the additional amount you pay will go directly toward principal... fyi, last year i got a letter from my bank stating that because of my excellent payment history I could skip a payment at chrsitmas time, to help pay my holiday bills.. They only do this because then that car payment ($425.00) will be accruing interest again over the whole term of the car loan, so the bank makes more cash on the exact same loan..Good Luck

[iamME]

You didn't mention the interest rate of your loan. Or what the term of the loans is. Say you have 2 years and you have 1 year to go. And say the interest is 6%. per year. And say the highest rate for saving deposits are around 5%. It would make sense to me to pay it off now because my money would only be making me 5% interest per year. And I'd have to pay 6% interest on my loan. If I had a balance of 7grand. I'd say I'd be paying a extra $70. Make sense? Even doubling up on payments everyother month lessens the burden and increases the interest saving while enjoying your saving account sense of security. However false that may be. Make sense?

[jay9258]

pay it off as soon as possible unless you have a low interest rate. if the rate is over 7% get it paid off asap, you'll save a lot in interest.