Should I pay off after getting laid off?

[MD18EcoStang]

Wait until the last person posts in this thread, then pay it off.

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[Tucker80]

Never pay off 0% early. Being unemployed it will be important to keep as much cash as possible. I know you mentioned you're "cash rich", but would you still be in 6 months or a year? I know you have leads, but until you've landed a job tighten your belt and save as much as possible.

It's always important to remember interviews are just that. Nothing is guaranteed. We've been interviewing candidates for >2yrs for position that we've filled with a temp at 30% of the position pay rate. We've had a lot of great interviews, but short of walking on water no one is going to displace the temp any time soon.

 

[EFI]

Pay the loan off even at 0%, you won't have to worry about the next payment and you will feel relief knowing the car is yours outright now.

Why? I would rather take the 4k and put it into a 6 month CD and have an extra $200 at the end?

I get paying off high interest loans early, 100% the right move. But 0% loans is one of the worst things you can do financially when you have even 4% APY from safe savings account if you don't want to take a risk in the stock market.

Say you have a 50k loan at 0% and you have 50k cash under your mattress. You can either take that money and pay it off day 1, or take that money put it into a 4% APY savings account and every month make the payment from there. At the end of the loan payment, you have a paid off car and $5700 in your pocket vs. $0. And your day to day financials would not be affected by this "payment" because it's all coming out of your mattress money anyway.

 

[DBM-Red-G2706]

There is no cost to paying on time, and there is no ROI to pay it off early.

Hang tight, land a new gig, then reassess.

Rock on and good hunting in the Job Jungle...

 

[Jaymar]

At 0% interest there is no financial gain to paying it off early. The only difference between paying it off and making the final payments is who holds the money for that period of time. With that being the only differentiating factor, the advantage for you would be to make the payments and hold on to that money for that time for more flexibility.

Paying now prioritizes the car over the unknow that may happen later. Paying later still gives the option to prioritize the car but allows you to make that decision when you know what the unknown factor is.

 

[stannypack]

I also have the 5 yr 0% apr and my monthly payment is $200. Thinking back I should have put even less down since there's no reason to pay it all off even though I could right now.

 

[5.0_Lojos]

I have, I think, 5 more payments left. 718$. But I just was laid off. Would you just bite the bullet and pay off the car or just try and make it work? I have 0.00% APR. And everyone keeps telling me not to pay it off because its free money. I just feel better if I would get rid of that payment.

I've already landed positive interviews somehow. So I'm not dead in the water. I received my PTO pay out and have a severance coming on Friday. Should put me way over the amount needed to pay it off. So I will have plenty of money if I do. But would you? Or would you just ride it out because its 0.00% APR?

I can't wait to be done with this payment. Most expensive thing I have ever bought in my life.

"I like to live like no one else so that later you can live like no one else" Dave Ramsey Finacial Peace University. Nothing better than being debt free. Id hope you have at least 6 months of expenses in case the little murphys come around 🫡 but you do have 0.0 apr Use that payment to keep paying of debt if u decide to payoff (debt snow ball) or save it. Hope all works out.

 

[Tucker80]

I also have the 5 yr 0% apr and my monthly payment is $200. Thinking back I should have put even less down since there's no reason to pay it all off even though I could right now.

0%, 60 months. Finance guy had the audacity to ask how much I wanted to put down... Not one cent down, and Ford will not get a single dollar early. I will make the final payment on the last day of the loan term.

 

[5.0_Lojos]

What is the payment like? Over $500 with zero down I assume plus insurance (full coverage) bank lien requiring extra coverage. So $700 at least? If the loan/purchase is 30k?

0%, 60 months. Finance guy had the audacity to ask how much I wanted to put down... Not one cent down, and Ford will not get a single dollar early. I will make the final payment on the last day of the loan term.

 

[DougS550]

NO. Do not pay it off. Remember, a paid off car doesn't put food on your plate or keep a roof over your head. Go on a "Rice and Bean diet" do not eat out, do not buy anything which is not essencial for your survival, no partying, drinking or smoking. Prioritise your life and spend the cash you have accordingly. Good Luck

 

[NightmareMoon]

Depends on your cash reserves. If you have 6mo or more of living expenses including rent/mortgage and that health ins after paying it then its probably perfectly safe to pay it off

 

[Tucker80]

What is the payment like? Over $500 with zero down I assume plus insurance (full coverage) bank lien requiring extra coverage. So $700 at least? If the loan/purchase is 30k?

Almost $900. 2022 california special with every possible option

 

[Oakley]

whats the risk if you can't pay the car note?
you lose the car.

whats the risk if you used up the money for the car note but need it later?
you put it on a credit card.

when hardship comes the first thing I do is get lighter.
cut costs, tighten the belt, but you can't get rid of that note.


edit: i just realized his payment was 900. 5 of those is 4500.

hell no i wouldn't pay it off yet unless i had like a year of cash reserves saved up.

 

[5.0_Lojos]

Almost $900. 2022 california special with every possible option

At the end of the day we all pay to play. No free lunch for anyone. Good thing is zero Interest and who knows what he owes. Im a huge believer in being debt free where possible, with that said ive spent more on my car than what its worth we all know what we gotta do when the time comes.

 

[S550HPP]

I would gamble the cash on NCLH or SMCI stock if can afford to hold for up toa year for likey 50% gain.

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