Hi all,
I'd love an opinion from some awesome MMMers.
I have a car loan (ducks to avoid punches) from the new car I bought in Jan 2013- 0% finance no fees, $287/month over 60 months. In my defence it's a 1.2L (tiny engine!) that only cost $17k total.
I currently have just under 3 years left (around $9k). There is an early payout fee of $13/month for the months remaining on the loan. What are your opinions on paying it off early if I have the cash? Is there a big difference between putting the $9k in an account earning 3% for the next 3 years and having that regular expense, versus paying off my loan early (with a $400ish early payout penalty) but avoiding indexation for the next 3 years and having an extra $300/month instead to save/invest? I'm really leaning towards paying off early -so the extra $300 freed up a
Month could go straight into savings-is that wrong? Would love any advice, especially about how indexation plays into it as it still confuses me a bit (eg how $100 next year is worth more than $100 this year)
Thankyou!!!
Ps-typing on phone- pls excuse horrid grammar/typing