Trade time or not?
Hotshot
Joined: Mar 2017
Posts: 10,153
Likes: 1,369
From: Chaz
Just make the minimum payment. If your interest rate is under 5% you are great.
Lead Driver
Joined: Oct 2014
Posts: 5,941
Likes: 1,356
From: NY/Canada border
Agree with this. I do a minimum $100 over my payment amount. Often more than that. I'll never be upside down on this truck.
Hotshot
Joined: Mar 2017
Posts: 10,153
Likes: 1,369
From: Chaz
I agree on the ceramic stuff that is great. I would also respray the front of the hood and do Xpel on it, maybe fenders etc too.
I am doing all that on a lower mile 2017 I got but the bumper is painted which really required some paint work.
I am doing all that on a lower mile 2017 I got but the bumper is painted which really required some paint work.
Hotshot
Joined: Mar 2017
Posts: 10,153
Likes: 1,369
From: Chaz
He owes $18k on a $40k truck and I can only imagine he financed it below the current inflation rate % in the year 2019.
Paying over the minimum payment would be a bad financial move.
You should be able to put down enough to keep your equity positive at the time of purchase, but there is very little regulatory standards in auto financing.
Only other reasons you would want to make extra principal on payments is at the beginning of the note payments (similar to increasing your down payment but kills some interest expense as you may have got a pay raise and can justify it), long term debt, or needing to pay off something early because of life changes like retirement.
Paying over the minimum payment would be a bad financial move.
You should be able to put down enough to keep your equity positive at the time of purchase, but there is very little regulatory standards in auto financing.
Only other reasons you would want to make extra principal on payments is at the beginning of the note payments (similar to increasing your down payment but kills some interest expense as you may have got a pay raise and can justify it), long term debt, or needing to pay off something early because of life changes like retirement.
Lead Driver
Joined: Feb 2022
Posts: 7,965
Likes: 4,042
This is what I did on the 19 I got. Touched up the few chips on the hood, polished everything and applied PPF and ceramic. The bumper is a lost cause though, will remove it this spring to grind the pits out, fill and repaint it, then PPF it before putting it back on. It's the only part that got really beat up from rocks and they all have pits of rust, so can't just fill and cover, that would last maybe 2 years before spreading.
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More Turbo
Joined: Mar 2013
Posts: 607
Likes: 377
He owes $18k on a $40k truck and I can only imagine he financed it below the current inflation rate % in the year 2019.
Paying over the minimum payment would be a bad financial move.
You should be able to put down enough to keep your equity positive at the time of purchase, but there is very little regulatory standards in auto financing.
Only other reasons you would want to make extra principal on payments is at the beginning of the note payments (similar to increasing your down payment but kills some interest expense as you may have got a pay raise and can justify it), long term debt, or needing to pay off something early because of life changes like retirement.
Paying over the minimum payment would be a bad financial move.
You should be able to put down enough to keep your equity positive at the time of purchase, but there is very little regulatory standards in auto financing.
Only other reasons you would want to make extra principal on payments is at the beginning of the note payments (similar to increasing your down payment but kills some interest expense as you may have got a pay raise and can justify it), long term debt, or needing to pay off something early because of life changes like retirement.
Fleet Mechanic
Joined: Jan 2022
Posts: 1,410
Likes: 712
He owes $18k on a $40k truck and I can only imagine he financed it below the current inflation rate % in the year 2019.
Paying over the minimum payment would be a bad financial move.
You should be able to put down enough to keep your equity positive at the time of purchase, but there is very little regulatory standards in auto financing.
Only other reasons you would want to make extra principal on payments is at the beginning of the note payments (similar to increasing your down payment but kills some interest expense as you may have got a pay raise and can justify it), long term debt, or needing to pay off something early because of life changes like retirement.
Paying over the minimum payment would be a bad financial move.
You should be able to put down enough to keep your equity positive at the time of purchase, but there is very little regulatory standards in auto financing.
Only other reasons you would want to make extra principal on payments is at the beginning of the note payments (similar to increasing your down payment but kills some interest expense as you may have got a pay raise and can justify it), long term debt, or needing to pay off something early because of life changes like retirement.
If you want to pay more on interest and keep your vehicle note the entire length of the loan then your logic makes sense. I suppose if your logic is taking the extra and investing it in some way shape or form it makes some sense but very few people do that, and on top of that you're not guaranteed a positive return on an investment. You don't get to deduct interest on your vehicle like you do a mortgage either so that's yet another reason to pay off sooner. I suppose you could potentially use it as a business write off, but doesn't sound like the OP is using it for business.
Hotshot
Joined: Mar 2017
Posts: 10,153
Likes: 1,369
From: Chaz
Only if he would be at net zero or better on interest, and can deduct as business interest. I financed as the loan was 2.9%, and my high yield savings is a 4.5% netting me 1.4% AND I can deduct business interest. Generally interest for a wage earner is not positive. Even Mortgage interest unless you can itemize is bad.
How about this advice…. Pay it off asap so the bank can get that money in and lend it back out at 8%.
Laughing Gas
Joined: Apr 2003
Posts: 1,188
Likes: 87
From: Olympic Peninsula
It is personal preference, we hate debt, always have. We have never had a vehicle loan last longer than 3 years. My wife always makes extra payments to get them paid off early. Here 2022 Explorer will be paid off in 18 months. We paid cash for my 2022 F350 and our mortgage on our retirement home we built 3 years ago was paid off in 2 years. We are lucky that we had good income prior to retirement and had a saving/investing mentality for the last 40 years.
Very few are better off due to more debt.....
Very few are better off due to more debt.....
Hotshot
Joined: Jun 2003
Posts: 12,340
Likes: 4,363
From: SW VA
Maybe. I had a 805 credit score in 2018 when I bought mine and could only get 4.4% through a credit union. Ford might have been 2.9% for 36/mo, but I couldn’t afford those payments.
Fleet Mechanic
Joined: Jan 2022
Posts: 1,410
Likes: 712
Pre mid 2022 2-4% was fairly easy to get if going through a local credit union with half decent credit. In May 2022 I got 1.99% for 60 months at a local credit union. Now the cheapest rate there period is 5.74%.