My M3 payoff

[kwike92]

So I need some advice..my payoff on my m3 is about 50k.. And originally wanted to throw a supercharged on it and a set of weels.. But then I thought.. Why don't I just pay this off instead then play with it..

Question, would it be best to just double, triple up on my payments? Or just continue paying the regular payments an save on the side and in let's say in two years just pay it in one lump sum???

What would you do if you where in my shoes...??

[kawasaki00]

I would pay it off as quick as possible as long as you are over half term. Banks do not like it when you pay it off earlier than half of the term. It can hurt your credit, it happened to my wife. Maybe go for the wheels now, it is something you will see and notice all the time. Supercharger is awesome but I would not spend 15k on one knowing I dont even own the car yet.

[NHman]

OP, difficult to say without knowing the whole picture. What is the interest rate on your loan? In general, I would recommend saving extra money, if at the end of the year it is not required for other needs (investments, house, school, etc), use it to pay down the loan. Rinse and repeat until the title is in your possession.

[Chriskm3]

If u can double up or triple up. Do it. Saving and trying to pay it off aooner with a larger sum at once gets very difficult once prices of any m upgrades come i too play.

[kwike92]

Originally Posted by kawasaki00

I would pay it off as quick as possible as long as you are over half term. Banks do not like it when you pay it off earlier than half of the term. It can hurt your credit, it happened to my wife. Maybe go for the wheels now, it is something you will see and notice all the time. Supercharger is awesome but I would not spend 15k on one knowing I dont even own the car yet.

your right...

i just think about how i always spend money on stupid things when i could be paying down my loan... i mean between bar tabs, clothes, trips, girls. etc...damn i probably could of owned this damn car already u know?

and anything extra money i pay above my regular payment go to principle any way... maybe ill just begin doubling payments each month...

and yeah, supercharger on a car i don't own... what if it blew up..lol id be paying on a broken down ass car.. lol, ill go for wheels.

thanks for the advice gentlemen.

[Bushido Brown]

A paid off car is the best kind of car you'll ever own. Once it's paid off, it'll give you peace of mind knowing its yours and you don't owe anyone anything. After its paid for, the money you were using on a car payment can be saved or used for that supercharger you want.

[lookitsma]

Pay it off ASAP. Don't worry about half term and what not. Banks these days are more worried about actually getting their money's worth back anyway. I don't see how it can hurt your credit as your total credit debt/income ratio has more to do with your credit score than how long you've been paying on time. It does benefit you some to having an longer average age of account but auto loans factor in very differently and is weighed significantly less than a revolver credit card.

[kwike92]

Originally Posted by Bushido Brown

A paid off car is the best kind of car you'll ever own. Once it's paid off, it'll give you peace of mind knowing its yours and you don't owe anyone anything. After its paid for, the money you were using on a car payment can be saved or used for that supercharger you want.

hahaha your abolsutely right, i had bought a 91 integra about a year ago and damn did it feel good to know i own this shit free and clear! lol

[son_of_siggy]

You won't get credit dinged paying it off early. Car debt is bad debt, unlike student loans and house payments, which is considered "good" debt.

Even if you got any "ding" paying it off early, it would be far outweighed by lowering your debt-income by $50,000.

[snk]

Not having a car payment - priceless

[kscarrol]

Pay it off! Bought my car in Oct '10 and got BMW's 1.9% financing for 48 months. Got tired of getting 0.4% interest on my cash so just paid off the loan. It is nice to know it is all yours...

[half man half amazin]

Double up on those payments if you can!

[OMMMG]

Look, I purchased my car $52k cash(paid in full) and it's a great feeling, now any money I make is mainly gonna be for modding, minus things like food, gas, insurance, school loan, shoes, watches, guns(I like too many things, lol)

Pay it off, then when you tell people "that's my car" it will be the truth

I'm only 25, have owned over 20+ cars since age of 15, been doin payments forever and it gets boring after a while, plus it never leaves any money for big mods, just my $0.02

[kwike92]

Originally Posted by OMMMG

Look, I purchased my car $52k cash(paid in full) and it's a great feeling, now any money I make is mainly gonna be for modding, minus things like food, gas, insurance, school loan, shoes, watches, guns(I like too many things, lol)

Pay it off, then when you tell people "that's my car" it will be the truth

I'm only 25, have owned over 20+ cars since age of 15, been doin payments forever and it gets boring after a while, plus it never leaves any money for big mods, just my $0.02

damn, 20+ cars and paid cash for a m3...

what business am i not in?.... mentor me..

[Mahzari]

I would double up on your payments. And if there's a penalty for paying off early, I would put that money aside every month to save up. The key is to tell yourself that the money is already "spent" so you don't include it in your disposable income.

My college professor had a 30-year mortgage with payments around $1,800/month. After being a good customer for a number of years, the bank lowered his payments to $1,400/month. But here's the smart part: he continued paying $1,800/month and ended up paying the home off 7 years early.

[Mr. ///M3 RD]

Originally Posted by kwike92

So I need some advice..my payoff on my m3 is about 50k.. And originally wanted to throw a supercharged on it and a set of weels.. But then I thought.. Why don't I just pay this off instead then play with it..

Question, would it be best to just double, triple up on my payments? Or just continue paying the regular payments an save on the side and in let's say in two years just pay it in one lump sum???

What would you do if you where in my shoes...??

To pay off as soon as one can is always the best way to go. Paying interest as you know is like opening the window and trowing your money out off the window.

I know not everyone can put the money down for a large purchase. I in my younger years also had to purchase almost everything on credit.

In your case if you like to keep the car by all means make a lump sum payment and pay off the car as soon as you can. If you add mods then at least you know you will be enjoying them for as long as you do have the car. Perhaps even the interest you would pay (if you pay it off over an extended period) might pay for the mods you plan to make.

In the end it's a deccison only you can make so my recommendation would be to open a spreadsheet enter the numbers and your deccison proccess will be simplifyed once you see the numbers. In addition make a list of pros and cons if you should purchase or not or keep leasing the car.

Good luck

PS. If you go with the purchase shop for the best interest rate you can get see your frendly banker, remember you already payed for a good chunk of your car so the low interest loan you are shopping for will be easer to get with your nice car as collateral.

[kwike92]

Originally Posted by M3RD

To pay off as soon as one can is always the best way to go. Paying interest as you know is like opening the window and trowing your money out off the window.

I know not everyone can put the money down for a large purchase. I in my younger years also had to purchase almost everything on credit.

In your case if you like to keep the car by all means make a lump sum payment and pay off the car as soon as you can. If you add mods then at least you know you will be enjoying them for as long as you do have the car. Perhaps even the interest you would pay (if you pay it off over an extended period) might pay for the mods you plan to make.

In the end it's a deccison only you can make so my recommendation would be to open a spreadsheet enter the numbers and your deccison proccess will be simplifyed once you see the numbers. In addition make a list of pros and cons if you should purchase or not or keep leasing the car.

Good luck

PS. If you go with the purchase shop for the best interest rate you can get see your frendly banker, remember you already payed for a good chunk of your car so the low interest loan you are shopping for will be easer to get with your nice car as collateral.

[red998]

i was in the same seat.
i bought wheels, and i paid double/triple per month.
worked out well in retrospect.

[luv135i]

Originally Posted by kawasaki00

I would pay it off as quick as possible as long as you are over half term. Banks do not like it when you pay it off earlier than half of the term. It can hurt your credit, it happened to my wife. Maybe go for the wheels now, it is something you will see and notice all the time. Supercharger is awesome but I would not spend 15k on one knowing I dont even own the car yet.

Early hurt her credit? Explain....

[son_of_siggy]

Sometimes people get dinged for not having enough "accounts" open. On my report they actually ding me for having too many accounts, and then again for it being too long since I opened an account. It's really just a game to keep people's credit score lower to command higher rates.

Even IF you were to get dinged by "closing" the car's line of credit, it's far outweighed by not having that $50k in bad debt.

[MauriceBoh]

i was in the same seat.

[Lorde]

Originally Posted by kwike92

damn, 20+ cars and paid cash for a m3...

what business am i not in?.... mentor me..

Can we not read between the lines?