I would suggest that you can do better by saving the extra snowball money instead of giving it to the finance company holding your car loan. If you're only paying 1.9% interest, you can get at least 5% by depositing it at Emigrant Direct or any of a number of other companies. No sense giving them the money sooner if they'll let you make more on it than you're payingThis is what I would tend to think as well... take whatever extra you were planning to use to snowball the car loan and put it in the bank (Etrade, ING, Emmigrant).This is what I've been doing on my car loan, 48-mo @ 2.9%, I've always been able to get higher then 2.9% return from CDs/high-yield savings, so I've seen no reason to pay off the car earlier. I'm past the point where the extra money I would have put toward the loan is higher then amount I still owe, the difference (interest I receive vs. pay) is approx. +$10/mo gross, which isn't much, but I won't turn it away...Though I have to admit there is a huge amount of temptation to just pay it off to get it off my mind... for some reason it's harder for me to face repair bills or high regular maintenance costs when I am still making a payment :^)
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra