No. of Recommendations: 0
Auto loan is 7.25

Does your auto loan have a prepay penalty? Is interest calculated based on "simple interest" or "rule of 78"?

Do you have a fully-funded emergency fund?

If you have a fully-funded emergency fund, and if your auto loan has no prepay penalty and the interest calculation is based on "simple interest", I would be inclined to pay off the car loan or split the money between paying down the car loan and investing. If you would be reducing the insurance coverage on the car after it is paid off, no prepay penalty and "simple interest", I would suggest 100% extra towards car loan.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement