Quote:
Originally Posted by xinfamousxi
My plan is to pay down my current Camaro by $7000 by next year so that I have a size able down payment when I trade it in. My dad says I should put the money into a savings account to get interest off of it. My brother says to pay down the car because more of my regular payment would go to the principal. Who is right?
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Depends on what will have the greatest impact. Interest rates on savings account are less than 1%. The average is maybe .30% So, that 7k would only make a whopping $21 and that's for a whole year!
You can get the trade-in value from KBB.com to get an idea of what the dealer might give you for it and subtract that from your loan payoff and see where you stand. Some people will be upside down depending on what they gave down, interest rate, and term.
If you want, PM your remaining term and payoff and I can work some numbers for you. I work for a bank by the way.
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