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|Subject: Re: Please Help me Optimize!||Date: 12/12/2001 9:33 AM|
|Author: decath||Number: 32811 of 77203|
Owe about $5,000 on a 1996 Honda Accord. Interest rate of loan is 13%.
Buy paying off the 13% car loan you can also shop around for liability only auto insurance. This would probably reduce your cost significantly by more than half, especially if you get it with a high deductible. You would have to factor in a few things before making your decision:
- How much the car is worth
- Could you afford a total loss by self-insuring? (sounds like you have plenty of assets)
- Your driving habits
- Your tolerance for risk
I am 40 years old and have always put my cars on liability once they are paid off and worth less than $5000. I've come out way ahead in the past 20 years.
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