I have a ridiculous car payment with a ridiculously long term. No, I don't plan on selling the car. I am going to be very anti-Mustachian about this and am completely inflexible. I have done some honest evaluating, and I think the level of happiness I get from having my car right now is worth having a car payment for - although, not quite as high a car payment as I've got right now.
The advice I am looking for is whether I should refinance the car loan or contribute to a Roth IRA this year. My original plan was to save up the $5500 contribution for this year and make it, save up the $5500 contribution for next year and make that, and then save up to refinance my car after that. This plan would probably have me refinancing my car in a year's time or so, but definitely next year. If I made refinancing my car my first goal, I could probably refinance by December to get the numbers I want - but I would not be making my contribution to my Roth this year.
My current Roth gets nothing, pretty much (0.99% interest, am currently shopping around for something better) and the car loan has a 4.99% interest rate. I am seeing advertised rates as low as 1.99% for loans of the size I'm looking for for people with excellent credit like mine at some lenders.
Is it worth paying a year's worth of car payments at 4.99% to be able to contribute to a Roth? Or do you guys think contributing to a Roth is for people who are out of/have minimized their debts?