Drive Accord Honda Forums banner

1 - 20 of 71 Posts

·
Registered
Joined
·
71 Posts
Discussion Starter #1
For the past few weeks been working 16-24 hours overtime each week. Looks like this will drag out til the end of the year since we're having problems finding qualified people for the jobs. The good news is with all this money rolling in I decided to pay the last of the remaining balance on the loan of the car; around $7000. It's nice owning a car that's still new and not having to owe a dime on it. Been putting a lot of miles on it though. I have had it for 11 months and already 18,000 miles on it. It's a great car. No complaints here.
 

·
Registered
Joined
·
329 Posts
Congrats! def a god feeling. I just took out another one for mines :'(
 

·
Registered
Joined
·
97 Posts
Congrats man. I did the same, and in my state, this allows me to remove the comprehensive coverage on my insurance. Reduced my premium by over 50%. :)
 

·
Registered
Joined
·
168 Posts
Removing comprehensive coverage will be very painful if you end up in a wreck...
 

·
Registered
Joined
·
71 Posts
Discussion Starter #5 (Edited)
Removing comprehensive coverage will be very painful if you end up in a wreck...
I agree with this. You'll be suprised at what a raccoon can do to your car. I had a raccoon run in front of me and take off my front bumper cover on a 2003 corolla I used to own. I don't know about your insurance but mine covered it under comprehensive. It was a $500 deductable and they ended up covering the other $2250. I am keeping my comprehensive coverage for now, especially with all the damn deer racing me down the highway...lol.
 

·
Registered
Joined
·
512 Posts
I would have invested that money. Paid off the loan over 2 more years and traded it in while there's still a ton of equity remaining in the vehicle.
 

·
Registered
Joined
·
661 Posts
Congrats man. I did the same, and in my state, this allows me to remove the comprehensive coverage on my insurance. Reduced my premium by over 50%. :)
For the love of God, get comprehensive coverage back. If the reduction in premium is enough to make you have the bare minimum coverage, I suspect that (like me) you are too poor to afford *not* to have insurance. With your nice new car, simple things get expensive real quick if an accident happens.
 

·
Registered
Joined
·
52 Posts
Well done! :dude: Dave Ramsey would be proud. Now sit back and wait for that title to come in the mail.
 

·
Registered
Joined
·
71 Posts
Discussion Starter #9 (Edited)
Well done! :dude: Dave Ramsey would be proud. Now sit back and wait for that title to come in the mail.
That's exactly why I did it. Take adavantage and pay it off. Now I don't have to worry about interest leeching my finances. I finally broke free of the balls and chains that I have been dragging behind me all these years. Sure I could have invested that money, but isn't getting out a debt an investment itself? Now I can sit back and pay $250 a month back into my savings, or even better pay back $1000 a month into savings with all that overtime. I am now officially debt free :D.
 

·
Registered
Joined
·
46 Posts
I would have invested that money. Paid off the loan over 2 more years and traded it in while there's still a ton of equity remaining in the vehicle.
What would you recommend investing it in? $7,000 doesn't seem like much to invest. Would love some tips if you're a pro.
 

·
Registered
Joined
·
2,127 Posts
Assuming you are on-track to put 18K in a Roth 401k this year, or max out on a Roth IRA ($5500), have 6 or 8 month's expenses in a liquid account, sure paying off a low cost loan is OK.
 

·
Registered
Joined
·
1,370 Posts
Right On!

I've been paying cash for my cars for the past 15 years. Sure I realize I'm likely tossing away a few hundred dollars by not taking near zero loans and playing the investing game but you know what - I sleep like a friggin baby at night knowing I have ZERO debt. It's all about lifestyle choices.

Now start taking that old monthly payment and dump it into some account and start saving for the next car so you can write a check for it!
 

·
Registered
Joined
·
1,930 Posts
Congrats to you my friend!! Enjoy the new peace of mind and financial freedom.
 

·
Registered
Joined
·
2,776 Posts
Way to go!! The take away from this is that you have the discipline to not immediately spend your extra income. Granted interest on an auto loan is small but it's all about being in the right frame of mind to avoid immediate gratification by spending on yourself.

Now you can apply your method to paying down a mortgage or contributing to a Roth IRA, DRIPS, etc. Sounds like you are young so if you do this now, your money can start working for you and with a little help from the market you could be well on your way to building wealth.

I remember that when I graduated from college, my dad gave me 2k and strongly suggested I open up an IRA. He did the same for my sister. My sister cashed hers out and went to Australia. I let mine ride and with another contribution when I started working today it is worth over 80k.
 

·
Registered
Joined
·
101 Posts
Congratulations....I hate car payments, I remember when my 2 kids were teens there was a short period of time that we had 4 car notes. Now that they are older and on their own I no longer do car payments....having zero debt is a good feeling...keep it up and one day you will be a wealthy man!
 

·
Registered
Joined
·
91 Posts
Congrats man. I did the same, and in my state, this allows me to remove the comprehensive coverage on my insurance. Reduced my premium by over 50%. :)
Totally your choice, but I agree with others who recommend you should have comprehensive coverage. Our vehicles are far too new and expensive not to be covered.
My '13 is paid off, but I will keep full coverage on it even though I believe my state would also let me dump comp.
 
1 - 20 of 71 Posts
Top