Ask a question

Paying Off A Car Loan

Paying off a car loan early?

I have paid off a couple of car loans early without penalties.
In fact, I have overpaid by mistake, and they have always sent me a check.
(they have to if you overpay).

But.. on here I have heard that some loans have penalties if you pay off early.
It almost sounds like it's those "scammish" loans that say 0% for the first 2 years, etc.
Navy Federal is NOT likely to have any penalty like this.
Credit unions do not play those nasty bank games big boy banks do.
But.... call anyway.
And, congratualations are in order.
You will touch that steering wheel completely differently when the car has no loan.

Warning: Do not pay off debt unless you have 5 months of income in savings.
You never know when you can lose a job, have medical not covered by insurance, etc.
Opinion: It is so important to have that savings, that a car loan is 100% acceptable.
Think about it.
Pay that loan. Wipe out your savings?
Lose job? What about paying rent? Bills? Live in your car?

Should I pay off my car loan early?

I currently owe $7,517.22 on my 2012 Hyundai Elantra GLS. I have $5,501.39 in the bank, and I'm getting around $1,112 on my tax return. I'm in the military so I don't have many bills except auto insurance and internet and I net close to $1,400 a month. If I don't spend any money except the 70 bucks I have in my wallet I can pay the car off at the end of the month and still have a couple hundred bucks left over.

I've heard conflicting things as to what I should do..My car payment is only $237.59 a month and my dad cosigned on the loan so I have a pretty low interest rate (3.65%) I would really like to be debt free but some people have told me that it won't look good on my credit because I don't have a long standing account. My score is like 745 but the only 'negative' thing on it is that I haven't had an account older than two years. My grandmother tells me that since its hard to save that much ($5,000) that its best to just make double payments and keep the money in my account, but I'd like to have it paid off. I've had the car since August 4th of last year so I could have it paid off in around 7 months..any advice on what I should do what be appreciated.

Should I pay off my car loan early?

I have about $6,400 remaining on my car loan. Approximately 2 years left. I have the money to pay it off now and a good credit score. Should I pay it off or continue with the monthly payments?

Should I pay off my credit cards or car loan?

Pay them both off and get out of debt. APR doesn't even enter into this calculation. If math was your strong suit, you would not be $30,000 in debt. If you drove paid for cars and learned to live without credit cards you would be asking a different question. Probably, 'I just came into $20,000 and want to know where a smart place to invest it would be?'

First, set aside $1,000 for a starter emergency fund. This will help you cover small emergencies while are getting out of debt instead of having to pull out credit card.

Next, pay off all the credit card debt, then cut them up, cancel them, and never use them again. Learn to live on less than you make and pay cash for stuff and you will live a debt free life. Don't listen to all the crap about FICO scores. It is an "I love debt" score and in debt is not a place you want to be anyway.

Finally, sell the car! The payment is ridiculous. Use the proceeds from the sale and some of what you have left (because you're probably upside down on this car) to pay it off. Then take some of your remaining cash to buy a good used car to get around in. Then pay yourself $475 a month to save for your next car and continue to move up in car while you pay cash for them. Keeping a car payment is a good way to stay middle-class the rest of your life. Cars are the biggest thing that we buy that go down in value, so only pay cash for them.

Do this and the next time you come into money, you will be able to invest it for your future.

Should I Pay Off My Car Loan Early?

I currently have about $1,400 left on my auto loan that I really just want to pay off now. I called USAA (My loan is thru them), to make sure that if I paid off the loan now it would not negatively impact my credit and was told that it would NOT. However, they did mention that they suggest I keep paying my monthly payments on it until it is paid off so that I still have this installment loan on my credit report.

My issue is... I really just want to pay off the car since I plan to move into a new apartment soon and could really use that extra money each month since the rent at this place is a little pricey. If just paying the car off with money I have set aside will not hurt my credit, would it be wise to do so?

I don't want to make a bad financial decision, but if either option will not affect me in a negative way, I am thinking just go ahead and pay it off? Right? Or maybe I am completely wrong...

Should I pay off my 4 year car loan (10k) If I have the cash?

Since Quora is idiotic enough to give is no indications as to your country or anything and you haven't provided any details yourself, I'll generalise the answer. Two things to consider, first, what are you earning on your investments? Is it lower than the rate you are paying on your loan? If yes, then prepay (subject to prepayment penalty, if any). Second, how much additional cash you have. If you prepay, will you still have enough liquid cash to tackle any emergency if one strikes tomorrow? If yes, then prepay.


HI!Please help if you can!I want to by a car from someone else,but he still owe some money.So we agreed that I pay off the remaining balance and he will sign the car over to me.My question is how to do this correctly?I am planing to pay cash.If we go to his financial institution can I get title on my name wright away?Because I don't want to pay it off and then he disappears and I am left with nothing?!Should we sign some king of agreement ???PLEASE ANSWER ONLY IF YOU 100% KNOW HOW IT WORKS!!!

Should I pay off my car loan or continue to make payments?

Pay it off. 1) It will boost your credit when it shows you've paid your car off far ahead of time. 2) It will save you money, 6% on a loan isn't high, but it isn't exactly low either. I know a guy who recently got a car loan at .08%... That's ridiculously low, and if your percentage was like that then I would say by all means to pay it off.You'll be paying nearly $2,300 in interest over the four years, if you can pay it off sooner then you save that much money. That's ~12.8% of the total cost of the car if the car itself is worth $18k!