WOW. Some of you guys have some deep pockets to have already paid off an 35k car. I still owe probably 15k or more (scared to look).

 

would your credit get significantly better if you dont pay it off now?

 

0 - paid cash.

Just remember, if you have a 3% note and pay a combined fed & state tax rate of 40%, you'll have to earn 5% on your money to break even vs. paying off your note.

 

I paid cash too. I did my research and knew what kind of prices people were getting with VPP. It was a sweet feeling sitting across from the salesman with my checkbook in my hand telling him I'm willing to write them a check for $3X,XXX for the car, take it or leave it. He said no, so I got up and started to walk out, ofcourse he ran after me and said "OK, you got a deal." Easiest and fastest car buying experience I ever had

 

That is awesome. I'd be interested in the price difference between those who financed and those who paid cash. This works the same for almost anything you buy. Cold hard cash is always better than financing.

I'd pay the car off. If you can pay for a 35K car, your credit can't be all that bad unless your trying to get credit from someone who reads the number off the computer. The only credit you need is for housing and its easy to find lenders who do manual underwritting and will give you a good rate.

As an example, I have a fried who owns a 200K house outright, owns two businesses and has about 500K in other liquid assesets. He had just started the two businesses and paid cash for them and decided to move closer to the businesses. He found a house for ~350K and for whatever reason he wanted to put 100K down and get a loan for 250K. First couple of lenders turned him down since he was self employed for less than two years. Went to a lender that actualy did underwritting and he got a 5% loan.

 

$542 a month for the next 30 months on a lease, then onto the next ride.

 

For me...I was upside down on my 03.5 sedan.

1 year stretched payments to 84 months at $616.00 another 72 months to go = $44,352.00 with interest of 4.9%. Most likely I'll pay it off in 60 months.
I was upside down by $10,000.00 on the lease...damn miles killed me. No more leasing for me.

Damn I need deeper pockets...!
Where's my suga mommy..hahhaa.

 

The only way to purchase a depreciating asset is a cash sale. So I wrote them a check for 39K and called it a day. You guys need to save a little before you jump into an expensive car I mean paying 500 a mth over 36 mths is no fun at all.