Should I Pay Off My Car Loan Early? Pro's & Con's
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- Опубликовано: 25 апр 2020
- Should I Pay Off My Car Loan Early? Learn what they don't want you to know.
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So you are asking yourself Should I Pay off my Car Loan Early? #sayLess I asked myself the same thing in this video I will walk you through my decision making process and how it affected my life.
If you have some extra money to pay off debt that is great but it is only normal to stop and think, What else could I do when this money? Should I pay off my car loan early or invest? How do I pay off a car loan or what happens when you pay off a car loan early. So many questions and by the end of this video you will have answers to all of them and more.
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Gonna save money to buy house.. having car payments takes that away
I just paid off my car loan in full today and I feel like boulders are lifted. Now with the extra money I’ll knock out my credit card debt and save up for my trip to Japan when the pandemic is over.
I know the feeling! It's nice to get an instant pay raise and it will be even sweeter when you're chillin in Japan.💪
@@DiamondEdwards my car payments was $453 a month. Now that the loan is paid off that $453 extra in my pocket that I can enjoy. People need to realize that car payments hurt when living paycheck to paycheck. There is a reason why the rich stay rich and the poor go out and get a 18% car loan. Your advice is amazing thank you.
Good luck and never borrow money again
Should I sell stocks to pay off car ?
Wow you and me both
PUUURE FACTS!!! SUBSCRIBED!!
love this guys energy
Debt free finally, gonna double down on investing...hang in there y'all, this is possible.
Never felt better, right! Interest is to be earned not paid!!! Welcome to the other side.
YES!!! love that mentality
Loved video, Thanks for sharing, many Blessings to you and yours ❤🙏🏽
Great Video!!! I needed this info! Thaaaaaank you!
Great presentation. Easy to follow and relate to.
Best video i've found on this topic thus far! Thanks a lot !
I’m 3 weeks from paying off my Jeep!
What a wonderfully feeling, right! Congratulations. What are you going to do with all that new found money?
Save up for a house bro !
@@supremeaction9026 I love that! My goal is to get more people into investing and buying assets that appreciate. Great job!
I just paid the Jeep off! Thanks for your videos
Thank you for this fire content. This is so helpful. I know paying off everything early is ALWAYS the move 🙌🏾
Great video and logical!
Thanks.. exactly what I needed to hear! 👍🏼
Glad it helped!
Great video Diamond! Comprehensive breakdown
Glad you enjoyed it!
Great video!
Great info,,subscribed
great info liked and subscribed!!
Great video 👍🏾
Very easy to understand. You broke it down
Fire video
Great video, loved it! Speaking facts.
Thank you!
Glad I found your channel man!
Me too!
Very clear explanation.
On track to pay my car off 39 months early! Should be making that last payment on the last Thursday of the month. Thank god for 3 paycheck months!
💪💯
I can’t thank you enough for your time and your knowledge I paid off my charger early honestly in a year!
That is great! I'm happy for you and your progress! What are you going to do with all that free up cash?
@@DiamondEdwards investment in my business I have going. And try not to buy the hellcat charger 😂
That is great👊 Make your assets buy your liabilities, smart!
Love how you explained it ! I had a hard time understanding these things , especially being a first time car buyer , thank you so much 🙏🏼! New subscriber🙌🏼😎
Ahahahah
I been debating with myself back and fourth whether I should keep paying my car loan and keep saving money, or pay it off early and save more money. You answered that question, thanks brother.
Learned a lot here on your channel. My first auto loan i I was mr. extra payment in instead of mrs. principal. Never once paid towards principal . Wow what a lesson there. Great info
This is a stellar video. I was already planning on paying off my car this year, but this is just awesome reinforcement. Keep up the good work man!
Thanks! Will do!
Great video thanks bro
Thank you!
Fantastic video thank you.....
Great video
This is a great video and wish I saw this earlier.
Me too and wish I didn't learn the expensive way. Vehicles has a lot of us twisted. It had me twisted! Happily paying a payment but not investing enough.
Been on edge on paying my wife’s car. Want to buy a house and paying car off will cut into my down payment. Awesome video. Going to have to pay it off! Great video man. Thank you!
Thank you so much for sharing your wisdom with us!
i really needed this video, i paid off my car note almost a year early and it feels liberating, i get to put that money into my mortgage instead of a depreciating car that is not a good investment to begin with . I also feel like i have more money to use to fund my memories with family .
That is amazing and I couldn't agree more! OUT with then car payments and IN with the STUFF that really matters. Good job Manny!
I really like this video..thank you bro ! I am about to pay mine off 4 years early.
Thanks man! You can do it just stay focused and encouraged! Check out my other video on how I paid my off early. Hint its deeper than the math. ruclips.net/video/NoXHrcdZItI/видео.html
Thank you 🙏 subscribed
Welcome!
Great info! I have been teaching my children all these things early!
That is awesome. I would like to think where I'd be had I learned this stuff as a kid. My first was born last year and I immediately opened up two custodial accounts. I can't wait to start teaching him.
@@DiamondEdwards You know that is the exact reason why I made it a priority to teach them very soon as they are able to understand money. It's so important to know and understand the benefits of great personal finance goals. Thank you for ur feedback. I'm joining your YT family. Pls check my channel out as well.
I watched your other video on scheduled payments vs principal payments and it was very helpful! I have a “simple interest” loan, do you know if the info you gave still apply to this type of loan?
Thanks for watching. Yes as long as you don't have a prepayment penalty and principal only payments are allowed per your loan agreement than YES everything you heard applies. Go get it!
Thanks for the informative video Diamond. Im 22 years old and and working on trying to be financially free. Just paid off my credit card and paying off car loan today. Only thing left is student loans when I graduate. I'll deal with that when it comes. Aloha from Hawaii
You are on fire! my guy! Stay focused and don't let broke people sway your decisions.
Did Uber for the last 4 months part time. Paying off my balance in full on the 15th of this month. Pretty excited.
Great video, thank you. Last April I bought a 13k compact suv in excellent condition, great mileage, and 7 years old which was fine with me. I plan to have it completely paid off in two months. This is a huge deal for me, I’ve never payed a loan off early or felt this sense of confidence with a loan like I’m comfortable with the payments and can even pay more. People like you who come on here and make videos are amazing, I’ve learned a lot just by using RUclips.
Very NICE, Thanks for sharing!
I want to buy a car, on payments but plan to get it paid off by end August . What should I do? Btw I am in canada.
With that freed up money I can invest more into my retirement and stop working two jobs.
Saving money for a house! Going on vacations!! Buying my wife purses! Saving for baby stuff! Traveling! Buying race car parts now! Lol! It goes on! Thank you for your knowledge and educating me! God bless! Subscribed!
Tomorrow I’ll be paying off my Truck 8 months early!
Congratulations 💥💪🙌! What's the plan now that payment is gone?
@@DiamondEdwards I will be saving. Add the money I would be spending on my truck into a savings account. Emergency fund also
I’m paying my car off next year and using that money to fund the apartment building I’m going to invest in
An apartment building! That’s awesome🙂 It’s crazy to think what just a car payment can do for you once redirected.
Diamond Edwards thanks 🙏🏾
Paying my truck off tomorrow... like a weight lifted lmao.
This video makes me wanna go pay off a couple gs on my next payment this was really inspiring
just got in a car loan, haven't had a pmt in year like over 30 yrs. and I needed a newer vehichle. Yes, my plan is paying this off as soon as possible, Nervous but it is going to happen. Haven't made my first payment saving up each week until the first one then snow balling from there. Wish me luck with prayer. LOL.
What type of car did you get? Price? No luck needed just use the principal method I outlined in this video ruclips.net/video/JLARGIGlOYM/видео.html Once you have this one paid off open a HY saving account or money market and start saving for your next one so that this car payment is your LAST! 😊
Thanks for the advice. Needed this.
I got a new used car last year and I wish I put more money in my down payment. But now Iam thinking I will put extra money in my monthly payment to finish my 6 year loan earlier.
The answer is yes! Yes, yes, yes!
Great info! I’m planning now to pay my car off within 4 yrs instead of 6.
I love my car but car payments suck!!! I’m on a mission and after I get that title and pay off letter, I’m adding half of what my car payments were towards my retirement. 👍🏽
A women on a mission, you're unstoppable and incredible 💯
@@DiamondEdwards
Thank you! Love your channel! 👍🏽💥
Hey everyone......listen to this guy. He knows what he’s talking about.
Hey he said..😃 not me.
Thank you I have only 7months to pay my car off. I do have the money in my saving to pay it off and still have money left over
Saving toward my down payment, closing cost, homeowners insurance, and title fees.
ill do thise in 1 year
I love it 💪
I am trying to get a mew car . I’m wondering if I should finance a newer model (more expensive) car with perhaps more mileage or an older less expensive car. I have a plan to pay off within 2-2.5 years. Please advise
Good video I’ll be checking out the others. Sub
Thanks for the sub! Welcome to the community!👊
I paid off my 2020 Ford EcoSport SE from the day I financed the car on May 10, 2021 and put down a $10,000 down payment at dealership to December 27, 2021 when I paid off the $11,720.48 in the span of 7 months and 17 days total. I'm expecting my credit score to drop a bit but now, I feel better and all I have are credit cards left to pay back if I do have a balance or not.
Me too
I’ve been battling myself with this for months knowing I should have bought my car outright after my lease was up 😅. I plan on calling my bank and paying it off this week. I plan to focus on a house down payment and max my 401(k) with the additional funds.
That is a great plan. Investing is where you really see things coming together. If you know, you know. Stay focused and keep going!
Came back to say, I paid off my car in November 2021 and met my retirement savings goals in 2022. Thanks for the motivation!
I need help. I seen your video about paying the principle and went to the GM financial app and it says they don't have that option. What can I do?
Thx
Gonna strive to pay my Truck off by Dec 15th 2021😎 Payments are $560.93 @ %18 interest Gonna Make Only interest Payments on top of my normal payments....
True, no more car payment. But, how long will it take to replace the money you used to pay off the loan? That's the key.
One thing is for sure, you will replace it faster than trying to save money while you have a car payment.
I've had my car paid off for 5 years now and it's an awesome feeling. But recently in looking at getting a newer vehicle and I know I'm gonna have finance a part of it, and it kills me...
My car payments are only $150 a pay period with 3.4 APR but paying off early would come from my savings which makes me iffy (this money I was saving for a down payment on a house), especially since I wouldn’t be saving that much in interest. I would still have money left over though. Should I just pay it off?
I would be paying my mortgage more least half my car payment worth other half in some type of cert./savings
That's a solid plan!
Do you mean by paying principle , pay the note and principle or principle only.
Damn this dudes good
I found this video inspiring; it made me feel less guilty about not having a larger savings (because it's only temporary God permitting). Just finished paying off some debts of my own. Nearly debt free now :)
I've been doing the Stash investments. Once my car is paid off, I can put my car payment money into my Stash account.
Great Job. I would put stash on hole and put that money towards the car until you pay it and build an emergency fund. Then jump back on stash with even more money to invest.
So the extra money I pay towards my principal would bring my balance down?
facts
Yes get rid of it ALLL
Took 30k and paid off my whip even with a 3% rate. Semi regret it but it was worth it
82% of millionaire said they dont have a car payments can you tell me what websites those
numbers came out of. I am a stats nerd. or whatever article. i like that kind of info.
That came from book Everyday Millionaires by Chris Hogan which was based upon The National Study of Millionaire which surveyed 10,000 millionaires back in 2017.
@@DiamondEdwards Thank you. i will be buying that book.
What three banks refinance
Credit is a beautiful thing if you use it wisely. When you have good credit you have access to rates and terms others do not. Ijs!
True but so often people with the best intentions but fall into debt. What I say is track what's important, your net-worth. Sometimes people forget that good credit is not the end goal and whatever you buy on credit has to be paid back with cash so get your account balances up too!
@@DiamondEdwards You are CORRECT. However I like to use their money in stead of mine. I think you are doing a great job with your content. You generation needs this. I been out on my own since 18 and credit and savings was the first lessons I was given. That's was 29 years ago.😂😂😂😂
Thank you and congrats on your continued success! Cheers:)
@@DiamondEdwards thank you! Same to you👍🏽
@@DiamondEdwards you mention you are from a impoverished area. What area?
Why would you cancel a warranty. That's a bad idea
We need more black guys listening to you instead of mumble rappers and Migos and other garbage that doesn't set them up for a better future
Man I love what your saying Nothing more true has been said like I had a cars it was 650 a month and 444 for full coverage I paid it for a year no issues then lost my job and was 2 months behind when I made the decision to borrow money from my aunt to catch it up and guess what I did i paid them the 1300$ I owed and told them to come pick the car up i wanna do a Voluntary Surrender and they took the car it hit my credit 3 months later and my credit Actually went up by 27 points and I've financed 3 car loans since then without a issue so I believe that you can't always believe what your told about credit and I've paid off a 66 and 48 month loan in 33 and 38 months and I owed them cars witch are a 14 and 15 so still pretty new you don't want or need a car loan its a big miss understand you want something reliable and hassle free
You hit on something. It's not about if you can afford something when everything is going according to plan. The real question is can you afford it if your live was turned upside down. I have never once had a situation in my mind where debt did not work. It always works in our mind. I added up all the money I missed out on by "living my life" while not investing and that is why I can never go back to payments. NEVER!
My plan at the moment is to pay off my car very early , eliminate all my credit card debt and then go into the dealership and finance a brand new truck
Question: (Can't remember if you answered this already) Do you think its a good idea to pay off car insurance for the year instead of monthly?
No problem keep'em coming. It's not bad either way but check with your insurance company a lot of them will give you a discount if you pay in advance. Take advantage of any discounts available.
@@DiamondEdwards oh shoot I never knew that, thanks
@2HootHoot as an insurance agent .. definitely ask if there is a payinfull discount. Sometimes this can be upwards of a 15% discount! And when you own the vehicle you have more flexibility with type of coverage limits you carry. (:
If I didn't have car payment I be Saving for my Mustang GT 5.0 performance package 27k in dept on car work walmart 11/h full time thinking about pick up shifts on my days off and trying to ask for overtime pay mean made nearly 700 in 8 days haven't even worked my full 2 weeks, Friday took 5/h schedule so can work that mabye use the later clock in time for temp work that day should make close to $70 for the 8/h pay if job right, plus $6 per person getting them back and forth
The grind is real! Keep going hard and make your sure you can afford the Mustang GT 5.0 performance package and NOT JUST AFFORD THE PAYMENT! :)
I’am getting a loan to buy a NEW car I will be able to pay the loan off when I sell my current car should I just pay it all off? And is it worth paying off early
I owe 6900 on my 2012 fusion with 60 mon to finance and i dont make that much so how can i make double payments.
How do I start atfer being 2 in on a 48 month loan.. 13612.97 with 22.45% 20654.67 .. currently have paid 9600 in try see if paying lump some on principal now would knock off the maximum amount of 20654.67 ..??? It’s showing I still owe $9700 so where in there
Savings
I could invest that money
The main problem thats killing American pockets are APR.
I'd put it in my 401k but I actually would take a hit if I took that account off my credit right now. It''s the longest-standing account I have.
What about banks that do not charge you for paying more than minimum?
Still pay it off as soon as possible and start using that money to met your other financial goals.
What if you pay the car off and it gets totaled ?
What is your view on whether to pay off a 0% car loan early. On one hand it isn't costing you any interest, but there is a also a psychological factor to be debt free.
I would pay it off because it is not about the interest rate like you said it is also a psychological factor. Also, if you have any debt that you are paying interest on or not investing in retirement the way should then you are losing on may fronts. Then check your paperwork and price you paid for the car. Was it the best price possible? A lot of 0% deal turn out not to be the best deal when you look at the full picture. This will be the topic of a future video. Stay tuned and thanks for watching!
@@DiamondEdwards is there a video on this yet?
Just financed a car for 72 mo , would it help me more if i pay extra every month, then 72 months?
BLUF: Yes! Here is what I did to pay off a 84 month loan in 34 months: ruclips.net/video/NoXHrcdZItI/видео.html
Ya... my car principle costs almost equals my net worth.. sad
Got to get it sold or paid off and start investing in things that increase your net worth. You got this!
I'm thinking on paying off my car this year I only have 5 thousand left, should I pay it off or wait because I want to buy another car, and how would that affect me when I ask for another loan again?
What type of car are you driving? I would pay it off just see what it feels like to not have a car payment. You could start paying yourself and use that money towards your next car. Banks don't car about your financial future so as long as your debt to income can support the payment they will approve you! I put out some good tips in my latest video on how to pay for cars ruclips.net/video/d1BUXNc1QKg/видео.html Comment on that video and give me your opinion. Thanks for supporting the channel.
@@DiamondEdwards I bought a Honda oddysey for family purposes but now is only me, so I'm planing on keeping it and I want to get a honda ridgeline 2017. Thank you for answering and ill go check out the other video. I'm already subscribed and thanks for your help.
Awesome! Cheers to your next deal!
What’s ur opinion on making biweekly payments for a car loan?
Bi-weekly payments are fine but it's important understand what they are and why they work. The result of Bi-weekly payments is every year you send the bank one extra payment thus paying the loan off faster and saving on interest. My favorite method is principal payments because you save even more and get your car loan paid off faster than biweekly. Check this video to see them in action. ruclips.net/video/JLARGIGlOYM/видео.html
Diamond Edwards I did si ur video about making extra payments on the principal but I can’t afford it 😔 Thanks 🙏🏼
Diamond Edwards Or what is a fair amount that I can send and that would a difference?
@@pattysanchez5641 I totally understand but know that I used double payments to simplify the example. Anything you can throw at the principal will help. If you take your car payment and divide it by 12 and make that as a principal only payment you will come out ahead of biweekly payments. Jump on bankrate .com an run your number through the auto loan calculator. You will be surprised how far a little extra can get you and how much you will save. When I get serious about payment my car off I was making 4-5 principal payments a month with any money I could afford to throw at it.
Diamond Edwards I will do that... thanks so much again ❤️
What if you used the interest earned on an investment to pay off the principal of the car loan? Sounds like a good idea, convince me otherwise
Here is my opinion on that approach: ruclips.net/video/d1BUXNc1QKg/видео.html
Let me know what you think.
@@DiamondEdwards good point, I like the Kiyosaki approach. Thanks for the response. Stay well
If you owe 12k on a auto loan and you pay it off is it cheaper? Because nomore gap and interest?
Exactly, pull up your amortization schedule to see just how much interest you will save by paying it off early.
💢💢💢But what do I do when I can’t refinance the car loan, and The loan company says I can’t make principal only payments? Do I just send a double payment on the due date to cut down some interest? I’m lost.... horrible credit and a horrible 17 percent interest car loan on $25k car
That is how sub-prime lenders work. When you see "No Credit, Bad Credit⚠Everyone's Approved" RUUUNNNNNNN💯 or come with cash❗ If you can'trefinance and the loan contract you signed down allow principal payments then you best option is to save the extra payments in a saving account until you have enough to pay off the car or negative equity and refinance.
You're dealing with predatory lenders, DON'T take their word, go read your loan agreement and confirm what it say about principal payments.
@@DiamondEdwards thank you sooo much for responding to me! Your info really helps me ALOT and you are an asset to our community... again, Thank You!!