I have 40 payments remaining, and $1700 will be for interest, if I invest that 10k there is something that give me more than $1700 in three years?
2006-11-22 11:04:46 · 11 answers · asked by espinoma 2 in Business & Finance ➔ Personal Finance
It depends on your financial goals. If debt reduction is important, then yes pay off the loan. To "get ahead" financially speaking, pay the car loan off, and take the same loan back out for investment purposes. If done right the loan is now tax-deductible. Every payment the loan will be going down, and your investments will be going up. This is also a good way if you don't have the discipline to save on your own. Do not do this without talking to a financial planner though.
2006-11-22 11:32:57 · answer #1 · answered by Ahiqar 1 · 0⤊ 0⤋
1
2016-09-26 13:05:55 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Do you know about investing? If I were you I'd pay off the car. That's the equivalent of increasing your monthy cashflow by the amount of the payment. You can invest the amount of your old car payment. Before you invest, educate yourself. A previous poster said you couldn't get 17% in three years. You could get that very easily and safely if you know how. Start reading and/or take an adult ed class on investing. And next time, PAY CASH!
2006-11-23 01:42:35 · answer #3 · answered by Big R 6 · 0⤊ 0⤋
you could consistently positioned a million/2 in the financial employer and use the different a million/2 for the loan, you have decreased your theory on the loan so as this is sweet, on the grounds that's what they base the pastime on. And $5k in the direction of an investment is a good initiate. ING is paying approximately that good now, i do no longer think of your generally happening financial employer will pay 5% yet. you could positioned it right into a good mutual fund like CGMX or avert & Cox Realty fund, they the two have a good cost of return over 30%.have exciting and stay out of debt, it rather is extra useful to no longer owe each and each guy or woman something. we've not had a vehicle fee in years and our homestead has a million year left till now it rather is payed for. this is freedom. good success
2016-10-17 10:15:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Well if you invested the $10000.00 you would still have to pay the $1700.00. If you invested the 10000.00 you would not make $1700.00 for a typical investment unless you played the stock market and got lucky. $1700.00 is 17% of $10,000. I dont think you will make 17% over three years if you invest it. Just my opinion. If you need to have emergency cash, invest part or all of the $10000.00 and continue to make your payments. If you like peace of mind, knowing your car is paid off, then pay it off. You could also pay down part of the loan and invest the rest. Try to continue making payments (to yourself) after the loan is paid off.
2006-11-22 12:17:15 · answer #5 · answered by hirebookkeeper 6 · 0⤊ 0⤋
Pay off the car, take the money you would have to make the car payments and put into the bank (saveing acct).When you save up X amount of money invest it. you win two ways. 1= you save big time on the car interest.2= you will save money, draw some interest from saveing acct , and can draw bigger interest from futher investments.
2006-11-22 11:14:21 · answer #6 · answered by R W 6 · 0⤊ 0⤋
Your best investment is to pay off the loan. I guarantee it. That will save you more money in the long run.
FP
2006-11-22 11:06:45 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Pay the car off!
2006-11-22 11:09:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋
pay off the car
2006-11-22 11:06:05 · answer #9 · answered by Anonymous · 1⤊ 0⤋
NO dilemma here... pay off. debt may infect your judgment for a new investment...!
2006-11-22 11:14:12 · answer #10 · answered by tink 2 · 0⤊ 0⤋