Hey everyone,
This is my first post on the forum as I have just been introduced to this community and what it's all about. I am looking to achieve financial independence, and I know becoming part of this community will be helpful! I was introduced to Mr. Money Mustache through Bigger Pockets. I love what this is all about.
On to my question...
I am 28 years old. I have NO debt, OTHER THAN my car payment. My largest financial mistake has been cars. I have spent a lot of money on them in the past, and have learned. Fortunately I have actually made money when selling my cars, however I have put a lot into aftermarket parts. I sold my "prized possession" american muscle car last year(which I purchased brand new in 2016), and replaced it with a more economical 2008 Subaru Legacy GT. The price of the car was $11,500. I put down some money and financed the car at around $9,800 (I don't remember the exact number) on a 48 month loan for 2.4% interest (my credit score is in the high 700's) through my credit union. I am currently 9 months into the loan and my remaining balance is $7,665. I pay $130 a month for insurance. I fill up the car approximately once a week for around $42 on average with premium fuel because the car has a turbo.
Here are my (perceived) options:
1) Keep the car and change absolutely nothing.
2) Pay the car off and keep it. Then continue simply paying for fuel, insurance, and maintenance.
3) Get rid of the car and buy a used hybrid car for around what I owe on my current car with cash to save on fuel, insurance, and eliminate the monthly expense. This option includes a risk of buying a car I do not know and may have random issues come up. A particular scary issue with hybrids is having to replace the hybrid battery for several thousand dollars, which would basically eliminate the savings on fuel.
I should also mention that I am currently getting ready to house hack. I have about $25k saved up to do so. I am looking to eliminate as many of my month to month expenses as possible. I do a pretty good job of living frugally as is, and have a decent savings rate. I earn a mid-level income but have excellent benefits and retirement options.
I'm really looking for some advice. There are no right/wrong answers, I just really want to get to know the thoughts and opinions of others that think similar to me. If you have any other ideas that my three options, please share!
Thanks everyone!