Author Topic: Just saved myself 2000 ($3000) on car finance agreement!  (Read 1429 times)

UKMatt

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Just saved myself 2000 ($3000) on car finance agreement!
« on: January 28, 2015, 03:15:11 PM »
Not long before I was directed to Mr Money Moustache, I idiotically signed up for finance on a 3 year old car. Interest payments alone, over the five years, totalled 2800!

Once I began reading this site in earnest, it dawned on me (or I managed to admit to myself) that I had a been a complete numpty ever agreeing to this in the first place. Rather than wallowing in the misery of my dumb decision, I began to wonder what, if anything, I could do about it. Looking into the possibility of paying off the finance early, I discovered I could ask the finance company for a settlement figure. I got the figure and then discovered that, as interest rates are very low at the moment, small personal loans from banks were very competitively priced. I visited a few comparison sites, found the best rate I could, did a calculation on borrowing what I needed over 3 and a half years (meaning I pay a bit more per month than I am now, but am fully paid up eighteen months earlier) and found that the total cost in interest would be just over 600, meaning I would save myself a whopping 2000, just sat at my laptop! I applied for the loan and have had it accepted in principle. Just need to sign on the line, hand the cash over and the work is done!

I would never have done this without this blog so I almost feel like I owe MMM a cut of what I've saved! He won't be getting that but I am very thankful indeed that I found the site and have started getting our finances in shape. It means we're going to be one hell of a lot better off for the future, even if we don't quite make early retirement.

I was going to celebrate by paying to stream a film on NOW TV but the one I wanted to watch was too expensive so I watched one on BBC iplayer instead, for free! This mustachian living is addictive!

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Re: Just saved myself 2000 ($3000) on car finance agreement!
« Reply #1 on: January 28, 2015, 04:23:49 PM »
Good job, UKMatt.  And you're right about Mustachianism being addictive.  I can't even remember HOW I found the site. (Most likely a link from another personal finance blog).  But one visit and I was h-o-o-k-e-d.  And, since then, I've managed to lower my basic living expenses by a LOT simply by applying MMM's strategic mindset (even more than the actual tactics).

UnleashHell

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Re: Just saved myself 2000 ($3000) on car finance agreement!
« Reply #2 on: January 29, 2015, 07:04:58 AM »
NUMPTY!!!

I love that word.

oh - nice job.... question everything! :D

James

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Re: Just saved myself 2000 ($3000) on car finance agreement!
« Reply #3 on: January 29, 2015, 07:11:27 AM »
Nice work! Congrats on the savings!
Not that a car loan is worth celebrating, but the savings certainly are, and going forward those little things add up fast. I bet you can pay it off in less than 3.5 years if you keep making mustachian choices.

UKMatt

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Re: Just saved myself 2000 ($3000) on car finance agreement!
« Reply #4 on: January 29, 2015, 01:07:57 PM »
Should hopefully be paid off earlier. Despite the saving, it's still my highest interest debt, so I will be focusing on it almost obsessively until it goes. Once that's dealt with, it's on to the mortgage.

It's the first and definitely last time I ever take car dealer finance. Glad I'm getting out nice and early before too much more money is wasted.