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  • getting out of a car loan FAQ


    pay upfront that way there will be no debt later

    the loan people and the car people only say loan so they can get extra money off intrest


    If you need a loan to pick up a $2000 project car you don't have the money to actually work on/buy parts for it. Do NOT finance him in any way for this car.


    Auto loans are a very poor thing to get into.

    In almost every case, after a few years, your car is worth less - sometimes way less - than the outstanding loan amount.

    Remember that first year depreciation on a new car can

    getting out of a car loan news

    Paying Down Debt vs. Saving: How to Decide

    18.05.12

    Dear New Frugal You,

    I have a 30-year loan on my townhouse with 6% interest. I paid $72,500 and three years later I owe about $70,000. My only other debt is a six-year new car loan with 11.6% interest. I paid $24,000 and have not made my first payment yet.

    If I have extra money each month to pay toward one of these debts, say, $400, which one should it go to? Things to factor in: Property values seem to have dropped the value of my house by about $10,000. I don't know how long I'll live there. I wanted to calculate an answer, but wasn't even sure which numbers to include. I want to get these debts paid off so I can start seriously saving for retirement.  
    Source: Fox Business

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