Paid off my car loan only 4 months into the term today.

Will save myself $1,800 or so in interest. Considering that the loan was 1% over what I could get with a CD and that CD rates will be falling I think it's a smart move. Even if there's a better move I could make it feels nice to know the biweekly payments are done.

Anyone have a reason I shouldn't have? I don't feel comfortable investing the money in the stock market with the current run-up and the outside chance of a continuation of the current administration.

Yes. Being out of debt is ALWAYS a smart move.

Of course it was smart. No investment I know of returns as much as you were paying in interest.

I had 0% and still paid it off early. Now even if my job goes away I don't have to worry about making next month's payment. Plus I'm thinking about retirement soon. But it was worth it for the peace of mind.

You said it yourself, you’re paying 1% more than what you can get. The math works out.

The only way it is not the smart move is if you have high interest credit cards that you could have paid off instead. but otherwise it is always the right move.

SUPER Smart decision. Think of what you could purchase with the interest you saved. Great decision IMO..

quote:

Originally posted by redstone:
The only way it is not the smart move is if you have high interest credit cards that you could have paid off instead. but otherwise it is always the right move.

Zero debt besides home mortgage. I still have 6+ months reserves for emergency and access to more if needed as well as plenty of credit available to me.

It was comforting knowing I have extra cash in the bank, but I hated the fact the value was being eroded from inflation.

Peace of mind, sleeping better.

Priceless.
.

Of course paying off your car early was a smart move and its my goal to pay off my 2024 Camry as quickly as possible. I really didn't want a new car but my previous car was close to 150000 miles and while I'm certain I could have squeezed another 50000 miles out of it with the federal reg coming in 2026 that mandates all new cars be equipped with a kill switch it was time to buy new. I paid my 2015 Camry off after about a year of ownership and not having a car payment for seven years was nice plus I saved over a grand in interest payments. A grand isn't much but that grand was better off in my pocket than Toyota's pocket.

quote:

interest

Now there isn’t any. Nor any debt.

Good decision.

Yes it was smart.

quote:

Originally posted by XinTX:
I had 0% and still paid it off early. Now even if my job goes away I don't have to worry about making next month's payment. Plus I'm thinking about retirement soon. But it was worth it for the peace of mind.

I'm considering doing that on the RAV. The extra $450 a month in the budget would be nice. I'll make that decision after the election.

I started listening to Dave Ramsey probably 15 years ago. Not all of his stuff makes sense from a number standpoint - example, his debt snowball, where you pay your debts from smallest to largest, regardless of interest rates. But it does make sense psychologically - by paying the smallest off first, you can actually see progress.

Same thing with me and car loans. Any more having the debt just does not feel right to me. I just don't like it.

quote:

Paid off my car today. Was that smart?

I don't care what anybody says, afaic, the less you owe, the healthier you are. That's how it is with me.

Yep, another Dave Ramsey saying "Don't pay interest, collect interest ".

Absolutely!

Okay, Honestly, I don't know. Never made a car payment. All of my transportation was either going to (or already in) the junkyard.

Been able to buy a ride for cheap* and drive them for years without any issues. Without a car note, I don't have to worry about cruddy mileage, etc...

Now the next step is to buy yourself a few rifles and a classic P226, but then think of what you could do if you made car payment size amounts toward the principle of your mortgage.

The amount of stress that you can rid yourself of is priceless!

* Some assembly required. I am the extended warranty. When adjusted for inflation, it gets close to $46,000 or so since the '80s. Results may vary...

Doing that, sort of, right now.
Dropping one of our cars to go down to 1 note. Pretty hefty overall savings.
Got a free commuter from family, so it was a pretty easy choice.

Being debt free is a great feeling.

Being out of debt is ALWAYS a smart move. Whether people admit it or not, being in debt affects your health and your outlook.

Proverbs 22:7(ESV)
The rich rules over the poor, and the borrower is the slave of the lender.