Do I dump my Hyundai and go Full Mustache?

[deek]

After reading several articles/posts about vehicles and how car loans suck, I'm closer to just saying screw it and selling my Elantra to buy a cheap vehicle that has less than 175k miles on it for one year and see what happens. I won't make any rash decisions, but the idea of saving that $235 a month seems a lot more appealing than it did a month ago.

Note: I will be a responsible buyer and make sure the next vehicle has been taken care of properly.
I should also clarify that I would have a difficult time parting ways with 35MPG.

[HBFIRE]

Without providing any details on your car it's impossible for anyone to know.

[deek]

Without providing any details on your car it's impossible for anyone to know.

It all depends on the loan details.
Willing to provide those?

@dustinst22 @craiglepaige

2013 Hyundai Elantra GLS
Interest paid last year - $243.19
Current rate - 2.64
Balance - $6,320

[ketchup]

Yes, we’ll need a full picture of the situation to say what makes sense.

Also, there are plenty of older cars that get 35MPG; that’s not exclusive to recent stuff.

[Another Reader]

Pay it off and keep it for 10 years.  Your interest rate on the loan is reasonable.  Not going to find much that is reliable and looks halfway decent (if that's important in your line of work) for $6.300 or less.

[HBFIRE]

2013 Hyundai Elantra GLS
Interest paid last year - $243.19
Current rate - 2.64
Balance - $6,320

That's a low balance and a good rate, I'd keep it (unless I didn't need the car).  You didn't mention the condition of the car, but a quick look at KBB tells me the value is probably about what the balance is.  As long as it's reliable and I'm not paying a lot in maintenance, it's worth keeping.  Pay it off?  Meh, optional.  In my situation, I'd keep my money invested and keep the loan @ that interest rate.  I did that with my small student loan which was about the same rate, and no regrets.

[Another Reader]

Sorry, I was not clear.  Pay it off as the loan requires.  Keep it until it becomes too expensive to operate.

[deek]

2013 Hyundai Elantra GLS
Interest paid last year - $243.19
Current rate - 2.64
Balance - $6,320

That's a low balance and a good rate, I'd keep it.  You didn't mention the condition on the car, but a quick look at KBB tells me the value is probably about what the balance is.  I would keep the car, especially given the low interest rate.  That is, as long as it's reliable and I'm not paying a lot in maintenance.  Pay it off?  Meh, optional.  In my situation, I'd keep my money invested and keep the loan @ that interest rate.  I did that with my student loan which was about the same rate, and no regrets.

Thanks! It's gonna feel great once I have her paid off.

Speaking of student loans.. I've gotta figure out a way to start putting more toward my student loans since that should probably be my priority. They have been sitting there building interest for 4 or 5 months. I'm gonna have to get a better paying job/and or wait until I have a sufficient emergency fund to start destroying those loans. There are a couple that are above 5%. I would KILL to have a student loan interest rate under 3!!

[deek]

Pay it off and keep it for 10 years.  Your interest rate on the loan is reasonable.  Not going to find much that is reliable and looks halfway decent (if that's important in your line of work) for $6.300 or less.

Thank you. Honestly I don't need something that looks good. Just is in good shape and operates correctly. But yes, once I have her paid off, it will feel great.

[Just Joe]

You MIGHT find something cheaper that is reliable and troublefree or you might find out that a cheap previous owner deferred maintenance that you'll get to deal with.

If you aren't a DIY mechanic, beware of overly cheap cars. I run a couple but both have needed TLC to keep running.

You have a good car. Run it forever. You can get your value out of it that way.