Anonymous asked in Business & FinancePersonal Finance · 1 month ago

Should I pay off my auto loan or buy husband truck? ?

We financed a new SUV for 5 years.  I’ve made monthly payments and have been blessed to save up in 3 years to pay off the loan.  My husband doesn’t have a truck at all right now.  I’m not sure if we would be better off paying my loan off and financing him a truck?  Or, just keep making payments on mine and paying cash for him a truck?  I’m at 3.5% interest rate.  

3 Answers

  • 1 month ago

    In order of financial intelligence:

    Don't live beyond your means. Pay your vehicle off as long as you still have an emergency fund.  (I have no idea why you'd be paying interest if you having plenty of savings like you say.)  If your husband has no vehicle and needs one, then look for a used one reasonably priced where you don't need to finance it.

    Now, if you absolutely need to finance his vehicle and can't wait for your savings to increase to pay cash, then go look at what rate is better (your 3.5% or a new loan) to determine which to have.  (Just X > Y type math.)

  • Anonymous
    1 month ago

    Pay off the loan if you can find a rate on the truck below 3.5% which you should be able to do.

  • 1 month ago

    I'd pay cash for the truck.  3.5% is probably better than you can get for financing a truck.  Go with a Ford F-150.  They last a long time.

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