On Saturday (July 20), I paid off my car loan.
I bought my car in January 18, 2012, which means that I had the loan for almost exactly a year and a half before I paid it off. My loan was a five year loan, so I paid it off three and a half years early.
Over the period of the loan, I paid only $550 in interest, which is a nice, low number. Obviously it would be nice to have saved that $550, but I needed a car and I didn’t have the cash sitting around.
My car had 62,000 KMs on it when I bought it. It’s not going anywhere soon, and I’m sure it will continue trucking for a long time. I had estimated I could get 8 years out of it, because I’m fairly gentle on my cars.
The repayment of my car loan frees up the $220/month that I was spending on my car payment. It was timed well with my raise, meaning I can enjoy a little under $300/month extra in my budget. However, being a personal finance blogger, of course it’s going to a good cause. I have plans for the money but I don’t feel like disclosing it on the blog because then I feel like I can’t change my mind.
My car isn’t on my net worth as an asset, because it will undoubtedly end up costing me much more than it’s worth.
When I’m completely sure about what I’ll be doing with it, I’ll let everyone know, but for now I’m just going to think about it. This summer hasn’t exactly been one that is conducive to saving. I’ve been on the go all summer, and travelling to and from various places, which means that my budget has been thrown out the window. I’ll likely wait until the summer is over and things calm down before I start putting the money aside for it’s intended purpose.
This is a cause for a Blitzkrieg celebration, Daisy!!! Can’t wait until we pay off our auto and home loan, all within the next 10 years or fewer. We will feel light as feathers and float in the wind above some mountain paradise!
Congrats, that must really feel good! Will be fun to keep that money for yourself now!
Congratulations! I was car payment free for 12 years. I bought a new car last July and expect to pay it off in 3 more years. Since the interest rate is only 1.99%, I am not in a hurry since I can earn more than that in the stock market.
Congrats! We paid off a big one this weekend, and it feels good! =)
Congrats on paying off your loan! I know i was pretty thrilled when we paid off ours 🙂
Congrats Daisy! Paying off the car loan 3.5 years early is HUGE!
WOOOHOOO! Congrats 🙂
Woohooo to you, I don’t even know you and I’m super proud. My 2013 goal is to pay off my car loan and it looks like it’s going to take more hard work and sweat, but it’s inspiring to hear about stories like this!!!
Thanks for the reinvigoration 🙂
Thanks so much! I’m really excited. Do you have debt that you’re wanting to pay off?
Waaaaay better than having a fancy car and the burden of a big car payment. Good for you, Daisy. I also like that you haven’t committed to how you will use that money now. We have changed our minds several times in the past month or so about what to do with money, and it’s never good to put it out there.
We really kept our book quiet until it was finished. We didn’t want to hear people say, “Hey, how about that book you were going to write?” Although it’s perfectly fine to change your mind, it’s harder when you have eyes on you.
May you bounce into your new car-payment free month with money eyes bugging out!
Agreed, Tammy! Thanks for stopping by and your encouragement. I think sometimes it’s motivating to have a lot of excitement about something, but at the same time, if you take it into another direction, you don’t want to have to answer to everyone.
Congratulations! That must be an awesome feeling.
Thank you! It is, it hasn’t really sunk in yet. It probably won’t until I have a plan for the money!
Nice going Daisy 🙂 That’s great it only took you 18 months to pay it off. In a way you’ll be giving yourself some extra monthly income for the next 3.5 years.
It feels like I had the loan for a long time! I guess in a way, yes that’s true.
Congrats!
Thank you!
Congrats on paying off the car! It’s a great feeling. What caught my eye about this post was the retro pic from ‘Saved by the Bell’. Brings back memories from my childhood. I actually just finished watching all the episodes earlier this year again on Netflix. Good stuff, lol.
Thanks Justin! Hahaha I know. That gif was irresistible.
Ahhh!! That’s so awesome! I’m getting giddy just thinking about how much you saved in interest!!!(<—super dork)
Haha I love the enthusiasm. I am excited, too!
Congratulations!!! Having no car loan is awesome. 🙂 We pay ourselves what we used to pay in car loans so that we can buy our next cars with cash. Good luck with your plan!
Great plan. I doubt I’ll need a new car for quite some time, but I should maybe save up in case it needs a repair.
Paying off your loan in 1,5 years instead of 5 years shows a great deal of commitment and discipline. Not everyone can do that! I have a very low interest rate on my car loan (2.99%), so I am not in a hurry to pay it off, even though I add a little money to the principle every month. But ideally, I would only like to have just a mortgage payment, and that’s it! I am on the way to that goal! Thanks for sharing your success with us!
Congrats Daisy, wow you really paid it off in record time.
Woo congrats on paying off your car loan! That is fantastic. I have a five year car loan out as well. The financing was super cheap and I don’t have a lot of spare cash right now. so this was the best option.
I miss u!!! 🙂
I remember when you bought that car, so happy you paid it off! Also, I know what you mean about not disclosing things on the blog at times because then you feel like you can’t change your mind….totes been there!
Aw, I miss you too!!!!
I’ve shared your story with my 19 y.o. daughter who unfortunately looks at the cash she can spend now by trying to stretch out the loan she currently has.
I’m hoping your story will help her see the sensibility you have shown and show her a better path…