Payoff Car Loan vs. Keep/build up savings?
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Anonymous
+1 |
Anonymous
|
Don't pay it off. or....pay it off and pray that you don't have any major expenses in 2015.
no brainer, for me at least. |
Anonymous
|
2.9% loan + only 3-4 month emergency fund = don't pay off the loan IMO.
You should have a much larger emergency fund. First, house repairs, etc., should be part of ongoing planning for O&M, not emergency fund use. That means your cash on hand should be at least 6 months (or more) of living expenses, PLUS the projected annual house repair & maintenance funds ($2-3K may be a good number there, depending on your house). So IMO you're way short on the emergency fund side and should keep using cash flow to build that up rather than pay a decently but not screamingly low interest car loan. |
Anonymous
| We need more info. How many years is the loan? You are currently paying $350 per month X 12 months= $4200 per year. Anything over 2 years is TOO much. |