Author Topic: Should we pay off the cars  (Read 2013 times)

jhartt3

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Should we pay off the cars
« on: February 20, 2014, 10:33:44 AM »
I have a car with 4 years left on the loan its a 5400 dollar loan at 3.5%  probably around 4k left 108 bucks a month
my wife's car has 3.5 years left on an 18k loan at 1.9% probably around 12k left to pay on hers.  360 a month

Yeah i know we should sell her car and get a cheaper one.  But i cant make that happen.  But does it make sense to pay any of these off faster?  the market should do better than that.  We both have extremely stable jobs and could instantly find one if that stability was gone.  (become an engineer if you're just going to college now)  we arent going to retire for 13 years.  both loans will be done by then of course. 

Thegoblinchief

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Re: Should we pay off the cars
« Reply #1 on: February 20, 2014, 10:39:39 AM »
Leave the loans alone unless you have a cash flow constriction.

jhartt3

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Re: Should we pay off the cars
« Reply #2 on: February 20, 2014, 10:43:26 AM »
sweet thanks i thought i had it right just wanted opinions of the community.  no reason to pay it down. 

lackofstache

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Re: Should we pay off the cars
« Reply #3 on: February 20, 2014, 11:43:13 AM »
I'd leave 'em be unless you really want to be debt free.

Milspecstache

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Re: Should we pay off the cars
« Reply #4 on: February 21, 2014, 04:42:35 PM »
I want to be debt free and I also hate the idea of financing a depreciating asset...

However, I took out a car loan at 1.9% to instead pay into my 7% land loan on my current house...  So, yes, sometimes it makes sense to delay paying off a car.

Bateaux

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Re: Should we pay off the cars
« Reply #5 on: February 22, 2014, 05:37:46 AM »
Knock out the $5,400 @ 3.5% then work on investments.   The stock market is a gamble but you have 3.5% guaranteed.