BadAzzMobile

I'm paying more because like someone posted above, money is really good right now, I'm almost a year and a half ahead of payments. So if something happend, I wouldn't have to pay another payment till mid 2015. I'm still saving a good bit as well, which everyone should, but I also believe that if I have this car paid off I will be set for a longggg time. I'm already moved out, but getting to the age where I'm about to try and find my own house, if I don't have a car payment, that would be great.

kylerohde

Sorry Dave Ramsey, as smart as paying cash for everything is, it's not realistic for a lot of people especially if you need a car and don't have one. Like DivaDanielle, my Mustang is my daily driver, weekend toy, winter beater and SUV when it needs to be. Why should everyone buy a boring four-door for commuting? Not like the operating costs for a Mustang are that bad.

JWButler14

29 here!

GrnT

I am 20. Ignore the last part.
+28

ford20

I'm 25 and I have to say that I feel lucky to have the car I do at my age.

Supersnake04

452 1/2 I'm a vampire! :blood:

mcrider

60 here

ctodd1

52 here, 6 Stangs in my life

Mustang_Jon

18 years young!

kcoTiger

What?! You've got to be kidding. You will be behind? Behind what, the "I've got the newest toy on the block" race? Behind the "I'm in debt up to my eyeballs" race?

Going through life financing everything is a sure-fire way to never, EVER get ahead. I have a Shelby in my garage because I saved my money. I will have a really, REALLY nice house in a few years because I saved my money. I'm 40 years old, and I will continue saving my money and spending intelligently. My credit is through the roof because I use credit cards/monthly recurring bills to establish credit--and pay them off completely every single month. You'd be surprised how much you can save when you don't have monthly interest sucking your paycheck away every month.

alexchern75

38 with a 2013 gt prem. 2.29% Apr x60 months. It took me a long time of responsible money handling and its nice to say that with my income and credit score I had many vehicle options. And I chose exactly what I wanted .
This is my third mustang.

alexchern75

You might want to check on that. With a revolving loan like most are, it doesn't matter how far ahead you pay, yeah your owed amount will drop, but you will still owe the same payment at the end of the month. You are better off saving the extra payment in a money market account, as an emergency fund for your car payments so you can earn the interest and offset a portion of you loan interest. Then when you have enough money saved you can just pay it off saving the additional accrued interest from the length of the loan.

I can pay off my car today, yet I have such a low debt to income ratio and a small Apr I'm better off keeping the loan and using that money for my next investment home purchase.

In addition to my regular savings I also keep an 8 month emergency fund... I can lose my entire income and still survive 8 months without changing a thing.

Without that safety backing I don't think anyone should be making $35k purchases regardless of income. My 800+ credit score speaks for itself.

BadAzzMobile

No not behind like that. I don't give a **** what anyone else thinks of me.

If you paid cash for everything growing up how are you going to earn credit? You think someone will give you money with no credit history? No, that's what credit score is for.

BadAzzMobile

I have, and I have talked to the bank. Like I said, money is really good, and will be for a good while. I wanted to get a head on my car payments because like most people, they want it paid off faster. Like I said I am saving, I save more than most people I know.

I'm only 21 and my credit score is 800+ as well, so I think I'm doing everything perfectly fine.

alexchern75

Sounds good. Make sure that the bank applies the extra to the principal.

jerseygirl

Wow I wish I had some of your jobs to afford a Mustang and have a high credit score and such ...but living paycheck to paycheck makes it impossible

ctodd1

I was 18 when I took a loan on my first new car. That was the last loan ever when buying a car. If it was not in the bank, I was not ready. When you do the math, you save a ton if interest that's not even deductible. Only hold two credit cards to pay bills and collect rebates and GM dollars when I buy a putter car every few years to keep the miles low on my babies, paid off monthly. Credit 840. I see many people trying to sell cars 1-2 years later for what the owe. Most times, they just can't get out of them as they have depreciated faster than the payments made. Not a good position to be in as "financial situations" can change quickly when you are young, leaving you in a bad situation. I understand many MUST borrow, I just am not on board with 100% financing on anything.....

ctodd1

And you are certainly not alone. Many have the same story these days. Hopefully things will improve for you.

BadAzzMobile

Everyone has their own way of doing things. No saying mine is the bet, cause its certainly not. I just feel most comfortable doing it this way.

And the principle is added to the total cost. So there's no getting out of it.

alexchern75

That stinks, some banks do apply extra payments to the principal if you ask.
In your case I would bank the extra payments and pay it off early with the saved money+ the interest you made. Unless off course, your interest is ridiculously low, then it wouldn't matter much.
I'm definitely not telling you what to do, these are just my thoughts based on what you said.
We normally take out a loan and do a lump sum pay off within 2 years.

When I was younger even with a great income, I lived paycheck to paycheck. I had to learn my lesson the hard way, it just took a while. My wife is an expert when it comes to money, so she set me straight lol. Some people are born with it as it sounds from some of your posts.