What more needs to be said. Loans out are good, but good credit doesn't pay your bills, just allows you to have more bills. Make the wise move, you won't regret it.

 

I'm in the same situation. Had the car for 6 months, paid 6300 and got some mods to tide me over. Last month I paid all my 'monthly car payments' until december. that way, from now until december, all my money can go towards a principle reduction. That's the smart way to do it. If you just make 'monthly car payments' it will take a year or two before you actually start paying on the loan. Get an amerization report from your bank and see where all your money goes. For the first year or two it's mostly the interest!!! A principle reduction is taking money off the top end of the loan itself, which in effect, takes off more money than you pay because there is less for interest to be calculated from. (if that makes sense) You'll pay it off faster than u think.

 

to build good credit.. just your credit card for everyday items.. even though i have money in the pocket, i will gas up and pay with the credit card, put that money in teh jar for the end of the month.. then pay off the credit card at the end of the month

do this for a while and you will get good credit

if you are super responsible, and you got a good interest rate, then you can consider this:

if you pay 3.8% interest
if you can do investment that make more then 3.8%, then you should do the investment and keep the loan.. so let's say you can make 9-10% a year (I did last year) and you carry the loan, you are making 6-7% a year on that money..

on the other hand, if you pay 14.9% interest, and you only make 8-9% a year in your investment, then it makes sense to pay off the loan first

-joe

 

good answer eng1ma!

 

 

I may be young, but I'd say pay it off ASAP, then you won't be paying so much over how much it costs. Then pay the loan off because I know you can be content with a stock car long enough to pay it off. Once you pay it off, all your money would then go toward goodies. That's what I plan on doing. Got new rims and that's all I'm going to do for awhile.

Hope that helps.

 

You only live once! GOODIES!!!

 

pay it off.. goodies will come later

 

id say pay it off

 

make huge payments...save money every month for payments and dont count the months...you'll be surprised how quick you can get the loan payed off, ditch the girlfriend, stop eating, and quit going to all those boobie bars... pennies in the jar my friend, pennies in the jar.

 

Well I do have a turbo OZ already right now and if you look at my registry I have a good amount of money already into my car. I think thats the only reason that is making 50/50 on this decison. I got the mod bug and now its eating away at me.

Oh and someone else asked how old I was. I am presently 21.

 

I've been paying double on my payments.. I'll have it payed off in no time.

 

The best thing to do would be pay it off by paying your current loan payment each month so you pay it off super-fast (you said the new loan payment would be half and you'd still payoff in about 18 mo)... then on your last payment OVERPAY by like $50... that way, your bank owes YOU money. When anyone goes to look at your credit, it will always read "overpay balance paid to loan holder" or some such. Looks very good.

 

since you cant completely pay off the car, why not split the loan amount and get both things done? 1) new parts and 2) your still paying off the loan quicker. like say keep 2k for goodies and use 6k for the loan...? just an idea...

 

you already have turbo.... I'd pay off the loan before you worry about modding your lancer a whole bunch more.