Thinking about paying off the 3 series

"E90M3" (e90m3) 06/06/2019 at 10:51 • Filed to: None

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I’m tired of paying for it and I have the cash in my savings, so I’m thinking about just paying it off and putting the loan behind me. I also have ~$1400 in cash back from my credit card that I could put towards it. In fact, I might just go ahead and put that money towards it whether or not I pay off the remaining balance .

Nibby > E90M3 06/06/2019 at 10:59

4

better idea

give that money to me instead... and the car

Ash78, voting early and often > E90M3 06/06/2019 at 11:10

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Not enough info...what’s your rate, etc?

There’s a growing theory among economists that Trump is sandbagging the stock market (tariff talks and Fed rate threats) so it’ll boom and help ensure his re-election next year. The idea is that once he pressures the Fed into cutting interest rates, he’ll drop the tariff BS and everything will pop.

If you’re paying less than 8% interest on that car, I’d be much more inclined to plow some of it into the market for the next couple years. Paying off a car is always tempting, but there’s usually a better place for it.

Also: Housing. Where you live, home prices have been appreciating 8-10% a year for the past couple years and it’s expected to continue. Might be worth considering using your savings for that instead...

We have enough savings to pay the Odyssey off right now (a year left on the note) but at 2.99% it’d be completely stupid. I have to weigh the emotional desire to be debt-free against the more logical approach: Run your life like a business. Send your capital where you get the best return.

WilliamsSW > Nibby 06/06/2019 at 11:11

2

You forgot to ask for the M3 too

WilliamsSW > E90M3 06/06/2019 at 11:12

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Great idea as long as it won’t wipe out your savings entirely.

I want to pay off the Mercedes but the wife wants to hold off a bit ( because reasons I guess?)

Snuze: Needs another Swede > E90M3 06/06/2019 at 11:18

1

As long as you don’t totally clear out your bank account, I’d say go for it.

I’m sort of in the same boat - I want to get the Terrain paid off ASAP, and we could but it would clean our savings out. We just did a re-fi and put a chunk ( $5k) towards it. Now we are making aggressive payments at the same time we’re continuing to save back up.  I’m hoping by the end of the year we’ll have enough that we can comfortably pay off the balance.  

BlueMazda2 - Blesses the rains down in Africa, Purveyor of BMW Individual Arctic Metallic, Merci Twingo > E90M3 06/06/2019 at 11:21

7

That’s $1400 less in your Tempo fund account.

Keep that in mind.

Nibby > WilliamsSW 06/06/2019 at 11:24

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let’s not be too greedy

WilliamsSW > BlueMazda2 - Blesses the rains down in Africa, Purveyor of BMW Individual Arctic Metallic, Merci Twingo 06/06/2019 at 11:25

4

You misspelled “Versa”

Tripper > E90M3 06/06/2019 at 11:28

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I always think about doing this like this, but don’t because I hate parting with large amounts of cash haha

BlueMazda2 - Blesses the rains down in Africa, Purveyor of BMW Individual Arctic Metallic, Merci Twingo > WilliamsSW 06/06/2019 at 11:28

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But he already has one a few feet from his desk.

WilliamsSW > BlueMazda2 - Blesses the rains down in Africa, Purveyor of BMW Individual Arctic Metallic, Merci Twingo 06/06/2019 at 11:32

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I think he likes having two of things though

Wrong Wheel Drive (41%) > E90M3 06/06/2019 at 11:54

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Looking forward to having no more car payment in November! Unfortunately 100% of that money will just go to student loans to pay those off faster. So I won’t really notice anything.

It is nice though that the car has depreciated absolutely zero. So it is actually kind of a savings account, regardless of the couple hundred dollars in interest paid. If anything the car is still worth more than I paid so it kind of cancels out the small amount of interest paid.  

B_dol > Ash78, voting early and often 06/06/2019 at 12:05

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Bingo - make money work for you. $1,400 in CC rewards earning zero interest is doing you no favors. 

Ash78, voting early and often > B_dol 06/06/2019 at 12:10

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I keep a few hundred in rewards most of the time, but only because Discover allows you to boost the value by trading it in for gift cards at about 200 retailer. We use it a lot...for example, our fridge died a few months ago. I used $400 in rewards for $500 in Lowe’s gift cards, which paid for almost half of it.

AddictedToM3s - Drives a GC > E90M3 06/06/2019 at 12:13

0

Counter-point: sell me your e90 M3 and then use that money to pay off the 3-series. 

Dr. Zoidberg - RIP Oppo > E90M3 06/06/2019 at 12:14

1

Sheesh, I can’t bring myself to even imagine having a car paymen—

[remembers massive student loans]

Ooooh.... :(

Future next gen S2000 owner > Ash78, voting early and often 06/06/2019 at 12:38

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I need to stick some money into some high yi e ld bonds or something. I have way too much sitting my my checking to be doing nothing with. But hey 0.00025% interest is something!

Ash78, voting early and often > Future next gen S2000 owner 06/06/2019 at 12:42

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Discover Bank savings is 2.10% right now! I think ING and some others are always in lockstep.

I can’t remember the last time interest actually paid something noticeable each month...

BeaterGT > Future next gen S2000 owner 06/06/2019 at 12:53

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I usually suggest Ally @ 2.2%.

E90M3 > Ash78, voting early and often 06/06/2019 at 13:41

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It’s 4.79%, and I decided to throw that ~1400 from my CC cash back at it, so I’ll owe ~5k.

That is an interesting theory, hopefully it’ll cause my SLB stock to go back up. I do need to start investing more.

I have additional money earmarked for a house, so this cash may or may not go towards that. Regardless, I’d like to have the 3 paid for by the time I get a house. Mainly I’d like to just pay for it and then start saving that money I would be paying towards it for other things. It’s more a psychological thing than anything else. There are better uses of that money, but I think it might help me accomplish other finical goals as that money is just sitting in savings. Also, should add it wouldn’t come anywhere close to wiping out my savings. 

E90M3 > Wrong Wheel Drive (41%) 06/06/2019 at 13:44

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I lucked out and had college paid for.

That is a nice thing. The 3 is still deprecating, but as long as I take care of it should serve me for years to come. One thing I can’t stand is when people only look as a car as a deprecating asset and neglect to value of utility .

E90M3 > WilliamsSW 06/06/2019 at 13:46

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It won’t, but I do want to buy a house; however, paying it off now would enable me to save that money back up. 

E90M3 > Tripper 06/06/2019 at 13:46

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It’d only be ~5k, so while still large, it’s not terrible. 

E90M3 > AddictedToM3s - Drives a GC 06/06/2019 at 13:47

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Yours for 100k.

Not a fair price, but I’d sell it for that. 

Tripper > E90M3 06/06/2019 at 14:04

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Oh yea that’s a pesky amount, I could see paying that off just to get it off your plate 

HFV has no HFV. But somehow has 2 motorcycles > E90M3 06/06/2019 at 14:06

1

Or, and hear me out, you could pay if my 3 series. 

HFV has no HFV. But somehow has 2 motorcycles > E90M3 06/06/2019 at 14:08

4

“It’s not a fair price but it’s what iI’d sell it for” ~ EAG’s motto.

E90M3 > HFV has no HFV. But somehow has 2 motorcycles 06/06/2019 at 14:11

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Think I’m going to have to pass. 

merged-5876237249235911857-hrw8uc > E90M3 06/06/2019 at 14:17

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What’s the interest rate on the loan? Do you have other higher interest items out there? If so, you can pay those down first, but if not, then yeah, it’s awesome to be free and clear on a car. Or if you’re concerned about zapping your savings, just keep paying monthly and overpay a bit each time but then you keep the balance available for emergency.   How close are you to finishing the loan term? And how much interest will you pay if you run it out?  All things to consider.  If your rate is low enough, it might be more appealing to keep some cash on hand to cover any unexpected stuff.  Not that you have to worry about that with an older German car ;)

E90M3 > merged-5876237249235911857-hrw8uc 06/06/2019 at 14:21

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4.79%, this is my only debt. I’m not close to zapping my savings, I’ve got a 5k to go, after I put my cash back towards it,  and I’ve been paying over since I started. 

Wobbles the Mind > E90M3 06/06/2019 at 14:28

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Paying the car off is a g uaranteed, instant return of hundreds of dollars per month. Just think about what kind of interest rate would it take to net you the same payout as that payoff and how excited you would be to jump on that deal otherwise. 

merged-5876237249235911857-hrw8uc > E90M3 06/06/2019 at 14:56

1

Wow, at that rate, you might As well pay it off. It’s nice to be free and clear on a car. And one less bill to address each month.  :).   

Wrong Wheel Drive (41%) > E90M3 06/06/2019 at 15:48

1

Well yeah its silly to think of any car as an ‘asset’ since it will almost always be a bad investment. I dont plan on getting rid of my STi but I would definitely consider it if I needed the money for whatever reason. In the mean time, I can drive it around problem free until I end up needing a clutch at least. I figure after 200k I am going to be in some nice uncharted territory and it’s bound to depreciate then.