Paid off my car!


#1

So I took out a loan with Lightstream because the interest rate was 1.7%. I took out the loan in Dec 2016. I bought a 4 door Jeep Wrangler because I surf and it’s just a fun car. I had never purchased a new car in my life. I really enjoy it.

However, after the first couple of months and seeing a loan balance of $30k I got fed up. It is now 19 September 2017 and I sent in my last payment. My car is officially paid off. I’m never going to take another car loan out again.

I feel great again being debt free. Probably time to quit and travel the world again.


#2

Amen, and congrats! We’ll never have a car loan again, either. My last one was 0% interest, but it still didn’t matter. Owing money on a car just doesn’t seem smart. Never again.


#3

WOW. Awesome job man, thanks for sharing and inspiring :slight_smile:


#4

Thanks guys. Yeah, owing money on a car just doesn’t seem smart. I’m considering getting a lifetime warranty through Jeep for ~2k. I never want to buy another car, lol.


#5

That’s awesome! I’m hoping to be right behind you, paying off my car by end of December, maybe January if the holidays get in the way. Then, the fun just moves to my wife’s car.


#6

That is great. Congrats on paying that loan off.


#7

Nice job!


#8

Congratulations and keep up the good work! Like other people here, I doubt that we’ll ever buy a new car again. The depreciation hit is just too much to stomach. Why throw money out the window? For many years we drove old high mileage Infinitis, and I don;t think we ever paid more than $2000 for any of them. We still have three of them, and they’ve all been chugging along dependably without the need for anything other than oil changes and minor maintenance. After buying a flawless 2008 Mercedes E350 for $7800 (using cash of course) last year, our standards have gone up a bit. Haha! In the future this will probably be what we’ll look for as a minimum-level replacement vehicle because we love the smooth ride, incredible power, and luxury. I figure that we’ve saved at least $100,000 over the last 15 years by buying and driving high mileage used cars. I often tell people that great cars can be bought for very little money if one has patience and uses common sense, but very few people seem to believe me. People think that new cars are so much more dependable, but that has not been my experience. The only major breakdowns that I’ve ever had involved a relatively new rental car, and a Toyota Camry that had a major malfunction at 48,000 miles. We’ve driven at least 8 cars with more than 200,000 miles on them and never had a significant problem. Buying a good used car is probably the single biggest money saving activity available to anyone interested in FI.


#9

Awesome - congrats!!


#10

Great to hear, congrats! :slightly_smiling_face:


#11

It looks like you learned your lesson after only one time. I wish I would have learned as quickly as you have! My current vehicle is paid off and the idea of spending more than $5000 on my next car does not sound appealing.


#12

Congratulations! We paid off our car a while ago, and it was such a huge relief!


#13

Thanks!


#14

Yes!! Congrats on being debt free and having the increased cash flow as a result of it. How nice does it feel having that extra income stay in your checking account each month?


#15

Congrats! I pay off one of my cars this month too and I also felt the same way about the loan. I’ll be paying it off in 3 months! Besides the new car I also have a 2002 Jeep Liberty that just turned 100k miles. The new car is really just a toy (370Z) and although it’s just throwing money away it’s fun. You gotta have fun sometimes as long as you have a plan to quickly make up the money, which I do and almost have! Congrats again!


#16

I haven’t had a car payment in more than 17 years, so I’m all about that. However, the flip side is if I’m only paying 1.7% I can take that 30k and put it in a safe investment and earn 5.2 percent (like verizon bond…if verizon goes out of business, then there is an apocalypse anyway lol)

Then just collect that 3.5 percent interest arbitrage and essentially be paying no interest on my car loan :slight_smile:


#17

Congrats! And one thing about the warranty, remember, someone makes money off of it and it may or may not be you.


#18

Congratulations! I love how you say with certainty you will never go back. I believe you!

We left our 2004 Camry, paid for in cash, at the Park N Go facility near the Charlotte Airport recently. When we returned we got into the Park N Go van with several other travelers to head to their lot. Upon arrival the driver suggested we flash our lights when we got to our row to help him locate our car. We were unable to do that with our remote. I’m sure the other passengers were thinking “poor schnooks” but we know better.


#19

Last night I had what most people would call a dream. In my dream I purchased a brand new Nissan 4x4. I am not sure why I did as this vehicle is not even on my radar. It was more like a nightmare as I questioned myself on the purchase and wondered why I traded in my perfectly good Honda Civic.


#20

Ha, at least being debt free now you always have the option to go back to that feeling again! Most people just live with it month in and month out! Congrats on getting that paid off so quickly! Cars always seem to drive better when there are no payments attached! No interest rate can top that feeling to me!