Pay off loan or supercharge

[emanon]

It is a depreciating asset and I hate throwing a bunch of liquid funds into a depreciating asset.

He did that when he bought the car and financed it. There is also not a huge opportunity cost lost here. If we're talking about paying off the house and losing the deductible interest, that is a difference scenario.

By all means pay off the car before you throw more money at it. And then stop financing depreciating assets.

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[CM581978]

Probably the worst investment is buying a brand new car in the first place

 

[Khyber]

Probably the worst investment is buying a brand new car in the first place

true but i refuse to buy used. I see what people do to their cars...and how they wash them without water and with dawn, running it through car washes that violently RAPE the car by slapping it, or how they don't change the oil... or spill shit on the inside and don't clean it up or nut sling all over it...or shift from 6th to 2nd... or ride the clutch or just in general mistreat the car.

i'll gladly lose some money driving it off the lot not to deal with other people's negligence.

 

[Jay159866]

^^^^This! If you have 2.5% or below, I would not pay off your loan. That is my own personal opinion.

I agree with this. You might want to trade the car in for a newer mustang one day. Just buy a centri, and put the rest away for car payments.

 

[moto111]

Ya a lot of people I know don't have 40k laying around to go buy a car. It's a good investment to me having a auto loan on a new car as it makes me happy and I work hard to pay the damn thing just like most of us do.

Honestly why not put half away and half saved towards blower so you have money for general life crap and then a savings for car crap lol . Personally I have gone in debt in car mods in past I didn't regret them as everything was being installed but having a supercharger well the fun quickly goes away when it's just a dd and you obey the law

 

[wproctor411]

It took about 7 years of not wanting a new car to be able to buy a new car with little or no loan. Debt free is worth it. Just my opinion but not having a car loan enabled me to pay off my first house in 11 years.

 

[emanon]

It took about 7 years of not wanting a new car to be able to buy a new car with little or no loan. Debt free is worth it. Just my opinion but not having a car loan enabled me to pay off my first house in 11 years.

This!

It's not always about the nickel and dime aspect of the "free money" by way of almost no interest. It's the mindset and habitual cycle of always owing someone else money for shit you want right now that will F-You in the long run.

I'm also assuming you already own a house. If not, start your priorities over.

 

[Need 4 Steed]

If the $6000 or so is all you have then I suggest saving/investing it instead of either option depending on your interest rate. If you have a high rate then I'd probably put half down on the car. Personally I got 2.4% on my loan and will only be paying a little over $1000 extra over the term of my loan. I am able to pay cash for my car... But why would I when all I lose is $1000 however if invested properly, the cash I invest instead of paying for the car will generate far more than what I am paying extra. By the end of my payments minus gains from investments. I will probably pay 25 less for my car. Long story short, that is why I finance.

Save until you have enough for two supercharges then get one.


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[moto111]

I guarantee that over 95% of people have there mustangs financed lol I will not wait 7 years to buy something I want . Espically when I could go to work and not come back any day why would I wait .

But like I said the novelty of a blower wears off shortly after install unless your a hardcore racer.

 

[DrDing.Muscle]

One thing I don't get is all the people posting about the bank calling about modding their car. How is this any different than having a mortgage and people bettering their homes by altering it? Does the bank care that you "modded" your home? No they don't. They don't care that you have done anything to the car. I have done this when I was younger and never once had any kind of an issue with a bank over modifying. I think it is an invalid paranoia about banks. If anybody has any personal situations they got in doing this I would love to hear it.

 

[Lowrider]

Sure. 740FICO = A+ credit. A+ gets the best rates and you can't get better than the best. Unless you believe the Equifax commercial and expect I'm going to give you my house plant because you knew your score (we tell you your score up front anyhow).

Combining the first comment and the other paragraph, you can also have 0 negatively reported accounts (late, written off, bankrupt, etc) and still have the same issue based solely on utilization. Ideally you want to be between 35 and 50% of the credit you have being used. If you're at 95%, bye bye score!

So for instance, if I have a CC with a limit of $4,000 and it has been used to the max by over 95%. Does that mean bye bye score?

Then how do car loans and personal loans count towards credit history? Since they are based on a term period and not utilization?

 

[Process]

Yes. Utilization is a huge part. On most credit reports you will see how far your utilization is on revolving accounts.

Car loans and mortgages are considered installment loans and are looked at differently. They are also considered secured loans as they are against an asset.

 

[Need 4 Steed]

Just check out creditkarma.com
Free credit score tracker with details. And just pay off almost all of what is on your credit cards leaving about 10% utilization before you get your credit checked and you will be fine. Don't miss payments. And loans are based off of if you make your payments on time as well as what banks are willing to loan you. So big loans that are paid in a timely manner are highly regarded


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[Evolvd]

How many of you with superchargers have a loan on your car? I recently came into some cash and I think I should pay it to my loan instead of adding a power adder to a car that is technically not my own.
Thanks

Some advice I've learned over the years...if you have a savings account that pays more than your loan interest, put it in savings. To cover emergencies and unexpected bills it's assumed you should have at least 3 months of your monthly expenditures in your savings account.

Since few savings accounts pay anywhere near most auto loan rates you are better off paying the principle on the loan and saving yourself some interest charges. It may not be much but .01 cent it better than nothing.

Another thing to consider is refinance. Look at the math with a lower principle and (most likely) higher interest rate. You can set the term for what you are currently at which will lower your monthly payments allowing you to save more or pay off the loan faster, thereby saving you interest payout.

Now, if your credit isn't top tier you may be better off not paying the loan and using that money to pay off any credit cards or other revolving non-secured debt (if you have any).

Basically it comes to priorities. You may want to talk to a financial manager (check your bank for free advice) and get some professional info. Having mods is fun, but they don't pay the bills and you never get your money back for them when/if you sell.

 

[Lowrider]

Just check out creditkarma.com
Free credit score tracker with details. And just pay off almost all of what is on your credit cards leaving about 10% utilization before you get your credit checked and you will be fine. Don't miss payments. And loans are based off of if you make your payments on time as well as what banks are willing to loan you. So big loans that are paid in a timely manner are highly regarded


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One more qn. When considering CC utilization, do they add up all the CCs to get a % utilization or is it based on individual CC?

Thanks!

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