Last post on Jun 12, 2011 at 7:05 AM
You are in the Automotive News & Views-Archives
What is this discussion about?
Car Buying, Car Financing, Car Leasing
#44 of 44 Last payment will be in November 2011 (only six left)!
Jun 12, 2011 (7:05 am)
I've never paid off a car before, usually trading them somewhere between two and three years old. Luckily they were all Hondas, so I always had equity even after only two years. I watched my friends trade other makes after a few years only to roll $8-$10k in negative equity into a new car loan!
I've had my current car, a 2006 Mazda3 s 5-door, since December 2005 and it only has 82k miles on it. It looks great inside and out (not even a door ding), so I plan to keep it and enjoy life without a payment for the first time in 21 years of driving! I have six more payments of $332.14 per month left on my 72-month loan. I had a lot of credit card debt and a student loan back in 2005 and I only earned about $45k per year. The interest rate was the same for 60 or 72 months, so I went with the $50 lower payment even though it was for six rather than five years. Thankfully, it was a reasonable interest rate and with my $2000 down payment, I have never been 'upside-down' in my 72-month loan. The Mazda3 has turned out to be a class leader in residual values.