# Should we pay down our car loan??



## Colleen (May 12, 2018)

Our car is just a year old. It's a great car and we don't plan on getting rid of it any time soon, but here's the deal....

We made a huge mistake (we were very naive!!) when we purchased this vehicle and now we owe more than it's worth. Ya...I know...stupid! We bought this car with 0% interest for 5 years. We need an inexpensive used truck to use for hauling tree trimmings, etc. and other things. I've been thinking about putting extra money on the car every month to get the balance brought down and pay it off sooner. I've read that that's a bad idea especially with 0% interest, but we'd need to make a small monthly payment on a truck. I hate the thought of having 2 payments.

Any ideas would be greatly appreciated.


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## Don M. (May 12, 2018)

If you Truly have a 0% note on the car, you probably won't gain anything by paying off the balance.  Everyone loses money on a new car....it's value goes down by 20%, or more, the day you drive it off the lot.  The Only way a car becomes of any value is if you keep it for several years, and avoid replacing it for a decade, or two.  

Finding a used pickup truck, in good shape, at a reasonably low cost, might be a bit of a challenge.  Trucks hold their value much better than most cars, and finding one at a "bargain" price, is quite rare...and may have some "hidden" problem that could cost you a fair amount to fix.  If you Do find a used truck for a good price, be sure to take it to a good garage or dealer, and have it thoroughly inspected, before you buy.


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## Colleen (May 12, 2018)

Don M. said:


> If you Truly have a 0% note on the car, you probably won't gain anything by paying off the balance.  Everyone loses money on a new car....it's value goes down by 20%, or more, the day you drive it off the lot.  The Only way a car becomes of any value is if you keep it for several years, and avoid replacing it for a decade, or two.  Finding a used pickup truck, in good shape, at a reasonably low cost, might be a bit of a challenge.  Trucks hold their value much better than most cars, and finding one at a "bargain" price, is quite rare...and may have some "hidden" problem that could cost you a fair amount to fix.  If you Do find a used truck for a good price, be sure to take it to a good garage or dealer, and have it thoroughly inspected, before you buy.



Yes, it's definitely hard to find a used truck that affordable. We've been looking for several months. When we find something, I check out the price on Kelley Blue Book to see if it's a fair price being asked for it. Most of the time, the prices from dealers are ridiculously high.....sigh.

We learned our lesson the hard way by trading too soon


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## Roadwarrior (May 12, 2018)

Trade the vehicle in on a smaller SUV with towing package?  Take the small loss if any & purchase a small utility trailer, you should be able to get one for less than $1,500.  Use the trailer for hauling your trimmings & stuff.  When the SUV gives up you have always got the trailer, also the trailer will probably be worth the same 10 years from now as you paid for it.  It has less parts to breakdown, no engine to worry about.  Licensing is minimal with low taxes.  Takes up less space in your driveway, costs nothing to operate, low maintenance, insurance is cheap & your neighbors will love to borrow it.


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## OneEyedDiva (May 12, 2018)

Ditto Don M's first two sentences. I don't know about finding deals on trucks.


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## KingsX (May 15, 2018)

Don M. said:


> If you Truly have a 0% note on the car, you probably won't gain anything by paying off the balance.  Everyone loses money on a new car....it's value goes down by 20%, or more, the day you drive it off the lot.  The Only way a car becomes of any value is if you keep it for several years, and avoid replacing it for a decade, or two.
> 
> Finding a used pickup truck, in good shape, at a reasonably low cost, might be a bit of a challenge.  Trucks hold their value much better than most cars, and finding one at a "bargain" price, is quite rare...and may have some "hidden" problem that could cost you a fair amount to fix.  If you Do find a used truck for a good price, be sure to take it to a good garage or dealer, and have it thoroughly inspected, before you buy.




Excellent advice !

I bought a new Honda Civic [inexpensive, reliable,  great for urban driving and holds its value more than other cars]
and made sure my car [and my house] was paid off before I retired at age 55.  14 years later I am still driving that 
same Honda.  I love my car and hope it lasts a few more years.

.


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## billt (Jun 10, 2018)

Never borrow money to purchase a depreciating asset.


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## Knight (Jun 10, 2018)

Road warrior probably had a solution that could work for you.
U-haul mounts trailer hitches for not a lot of money. A hitch that is appropriate for the towing capacity of your vehicle. If your vehicle isn't recommended to tow no hitch will be sold to you. U haul is pretty reputable that way. 


Something like this from Amazon might fit your needs.


Yutrax TX158 Trail Warrior X2 ATV Utility Trailer -


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## Camper6 (Jun 10, 2018)

Lease a truck when you need it for a weekend or a day or two.

Keep the car.  Make the payments. 

You were asking for advice.


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