whats your payment??
Senior User
Joined: Sep 2001
Posts: 353
Likes: 0
From: South Dakota
whats your payment??
It does make you wonder when you see all the people paying $500+ a month for their truck. I had a cousin who sold cars for a while and he said it was terrible how people would trade in something they were stil paying on and have unbelievable payments. Anyways, I wish I was able to pay cash for mine, but if I did I wouldn't have had anything left to use in case of an emergency, plus I wanted to build up my credit. I guess part of it too is I'm in agriculture, and pretty much everybody I know has to borrow money to operate unless they're retirement age then they finally have everything paid off an can actually enjoy it more. I am wondering though how many of the zero people did have loans that are paid off now, or did you pay cash. Also, if you paid cash what kind of money are you making a year? 
Cargo Master
Joined: Jul 2000
Posts: 2,281
Likes: 18
From: Northern California
whats your payment??
I don't know if you guys are aware of this or not, but 'prepaying' a car loan doesn't work the same as prepaying a home loan.
I discussed this with some accountants at work before and the way the loan is setup, you still pay the same amount of interest.
With a home loan, the interest is calculated based on the amount owed (balance owed) on the home, so it goes down each month that you make a payment.
A friend bought a new truck and we talked about the advantage of paying it off with some new money he got. The end result is that it didn't save him anything.
The only real way to take advantage is to get a home loan to pay off a truck and deduct the home loan interest off the taxes.
I'm no expert, but that's what I was told by one.
I discussed this with some accountants at work before and the way the loan is setup, you still pay the same amount of interest.
With a home loan, the interest is calculated based on the amount owed (balance owed) on the home, so it goes down each month that you make a payment.
A friend bought a new truck and we talked about the advantage of paying it off with some new money he got. The end result is that it didn't save him anything.
The only real way to take advantage is to get a home loan to pay off a truck and deduct the home loan interest off the taxes.
I'm no expert, but that's what I was told by one.
Posting Guru
Joined: Aug 2002
Posts: 1,258
Likes: 0
From: clementsport canada
whats your payment??
Originally posted by FordRancher
I am wondering though how many of the zero people did have loans that are paid off now, or did you pay cash. Also, if you paid cash what kind of money are you making a year?
I am wondering though how many of the zero people did have loans that are paid off now, or did you pay cash. Also, if you paid cash what kind of money are you making a year?
not fancy, but they work just as good as new....
btw, wife and i combined, are making $45,000 a year, canadian...
only thing i've ever owed for is my house....
Senior User
Joined: Aug 2002
Posts: 175
Likes: 0
whats your payment??
DO NOT refi your home to the sole purpose of paying off short term debt. from the date you refi, its a new 15 year note, minimum, and new car loans are at amazing rates, like 0%. i was gonna pay cash for my new explorer in '00, they offered .9% financing. guess what i did? my ex with her last husband would refi about every time rates made it work, pull out the cash and pay off all her crummy short term debt, cards and p.o.s used cars. when she divorced the guy, they owed more on the house than they paid for it originally. should have cleaned up, due to rampant appreciation in this area.not his fault, nice guy, just not real sophisticated.
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