Paid My Car Off Early!

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SwampSurvivor

SwampSurvivor

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Apr 9, 2008
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Central NY
Finally made myself submit the e-payment to pay the Focus off! Between this and canceling my Cable TV service, I have given myself a $3600/year raise!

I have had the money in the pay-off-the-car account for a while now, but couldn't make myself write a check that large. Made myself do it on Sunday. Payment cleared yesterday, balance was showing $0 this morning and status is paid off.

I have zero debt other than a lot of student loans. If I delay buying a house by a year or two, I should be able to pretty much completely eliminate my student loans in 2 years (while keeping my savings account what it is). Or, I can save up and likely pay cash for a house by the time I am 30. However, everything is on hold until tax time. I'm not sure how much I'll be paying this year.

Does feel like a bit of a weight has been lifted off of my shoulders! I don't plan on doing this again (financing a car). This should easily have a few years left in it - the rust hasn't started yet.
 
Nice!

We have not been able to keep ourselves in vehicles worth having without some financing but we still buy modest which makes a big difference.

Jeep is a few months from being paid off as well.
happy2.gif
 
Congrats - I plan on carrying our car loan to term but good for you as it sounds like you wanted it gone.

Got to ask (if you don't mind sharing) where were your student loan rates versus the car rate - our student loan rates were astronomical compared to our car rate.
 
Congrats,
yes it takes some weight off your shoulders, isn't it?
just curios, with rates this low, why do you push the house purchase so far?
you can buy a duplex/3-plex/4-plex and pay it off early....
 
Originally Posted By: 99Saturn
Congrats - I plan on carrying our car loan to term but good for you as it sounds like you wanted it gone.

Got to ask (if you don't mind sharing) where were your student loan rates versus the car rate - our student loan rates were astronomical compared to our car rate.


Some of them are, some of them aren't. I went to college during the "great recession" so I have a bunch of student loans. For the amount of debt I wanted to reduce, this was the highest interest rate.

I will probably end up holding off on the house for a year and using this $3600 raise to at least bring the amount of interesting I'm paying down.
 
Originally Posted By: pandus13
Congrats,
yes it takes some weight off your shoulders, isn't it?
just curios, with rates this low, why do you push the house purchase so far?
you can buy a duplex/3-plex/4-plex and pay it off early....


I could do a reasonable donwpayment on a nice $60K duplex right now. I want a low mortgage along with having more money behind me should something happen.

I am planning on a two family house. I want someone else to at least help with my mortgage.
 
My sincere congratulations. What a great day, worthy of some sort of celebration!

I usually send an extra few dollars in with every payment, seems to work very well if your bank can handle it. I have never had a car loan for over 3 years since I was a kid.

Great work!
 
Originally Posted By: Miller88
Originally Posted By: 99Saturn
Congrats - I plan on carrying our car loan to term but good for you as it sounds like you wanted it gone.

Got to ask (if you don't mind sharing) where were your student loan rates versus the car rate - our student loan rates were astronomical compared to our car rate.


Some of them are, some of them aren't. I went to college during the "great recession" so I have a bunch of student loans. For the amount of debt I wanted to reduce, this was the highest interest rate.

I will probably end up holding off on the house for a year and using this $3600 raise to at least bring the amount of interesting I'm paying down.

thumbsup2.gif
Makes sense. I gather I'm only a few years older than you so I was just curious.

My blended student loan rate after graduation was something like 3X our current car rate (not accounting for any possible tax write-off) and once I graduated prepayments couldn't be applied to a specific loan, but had to be applied across all of the outstanding portions so that was the least attractive to me.

Again - Congrats.
 
Stay away from debt and don't buy a new car. It's a trap. Live beneath your means. The only thing to borrow for is real estate.
The wife and I had a house paid for by age 31 using this formula. Been on easy street ever since. It can be done.
 
did u get the clear title in hand? check with hi way department . my mother paid off her car bought new in 98 from a dealer and after mom died the hi way department said there was still a lein on it 16 years later from the original sale.
There was not , took time to fix it.
 
Congratulations!
Recommend taking care of this car and continuing the car payments to the savings account of your choice.
Then you either have a nice downstroke on the next vehicle, or else you may be able to pay cash outright.
 
Originally Posted By: edwardh1
did u get the clear title in hand? check with hi way department . my mother paid off her car bought new in 98 from a dealer and after mom died the hi way department said there was still a lein on it 16 years later from the original sale.
There was not , took time to fix it.


FWIW - NYS DMV - Check the Status of a Title Certificate or a Lien

In NY - you hold the title and receive a letter once the loan is closed that the lein is released, you can either hold the letter or submit the letter and title and get a "clean" title from the DMV for an extra $5 or $25 I think. Took my new loan almost 2 months to get listed on there but the old was cleared within 2 weeks.
 
Feels good. I don't like debt. Have never had any credit card debt / store credit, etc.

Have not got the title yet - payment cleared yesterday. I will contact the DMV and see what I need to do to get a clear title for the car that shows the lien was released.

I already have the next car picked out. It will be used when I get it, though and likely won't be made for a year or two.

I don't see why the Focus won't get me a lot more mileage. I'm sure the starter / flywheel will need to be replaced from being started so much when new. Clutch/slave may require replacement eventually from city miles. Maybe an ignition cylinder some day.

My goal is to not consider replacement until it starts to rust.


Originally Posted By: WobblyElvis
Stay away from debt and don't buy a new car. It's a trap. Live beneath your means. The only thing to borrow for is real estate.
The wife and I had a house paid for by age 31 using this formula. Been on easy street ever since. It can be done.


I planned on that. Unfortunately, I found myself in a situation where I needed a new car for work. I planned on staying at that job a lot longer than I did ... Had I known I was only going to be there a year, I would have taken a different course of action.
 
Congrats! I've been payment free for a little over 1 year. My last payment was on my motorcycle which was an impulse buy. Just had to have it.
 
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