Originally Posted by Gripster
I got a pretty good rate when I bought my car (4.75%), but my finance guy still advised to pay the thing off as quickly as possible.
While conventional wisdom suggests not tying up your money in a depreciating asset, by keeping the loan open, any profit you make you make is offset by the money you are loosing on the loan.
This is a personal decision, so do what feels right. If you have financial advisor that you trust discuss it with him. We're not exactly financial experts here - we bought a car for $40k+ when you buy perfectly good transportation for less than half that
that's actually a very good rate and part of my reasoning here, and its very hard for a guy like me with a little financial saavy to admit, is that i bought it through bmw with a higher than i should have paid interest rate. While its not horrible like 8% or something, its 6.25 and for a guy with a credit score close to 800, that's AWFUL!
So that's partly why i want to clear the debt of the car. I dropped 15 grand when picking it up, putting another 20ish to finish it out isnt too bad and plus it will get rid of this embarassing " sure i'll sign on the dotted line without thinking about it" mistake i made :mad: