Deal of the century?

Grouse · July 12, 2018

Making additional payments on a FIXED mortgage (line of credit is a different story) is not the best “investment.” Your additional payments on your house come off the back end of the amortization schedule. If you put your extra payment each month into an interest bearing account like a cd, or if you like a little risk use the stock market. This way you get a return on investment.

Once your cd or stock portfolio is enough money to pay off your house then it makes sense to pay off the house. Then you have no monthly payment.

Addionaly if I was to choose to pay more than the current balance on any of my loans, I would chose the one with the highest interest rate regardless of whether it was a car, house, boat, student loan or what have you.

Edited July 12, 2018 by Grouse

TheBlackPearl · July 12, 2018

I like turtles

cire0309 · July 12, 2018

21 hours ago, joejoe11 said:

So riddle me this if you will, and I doubt that this will workout, honestly, but I can dream.

So I purchased my 2017 2WD LT V6 Crew from the same dealership last year for $27,800 on a 72 month loan. My payments is $418/month. It is in perfect condition with 2300 miles on it at this time. KBB and Edmonds value the trade in right around $27,100. I'm just going to assume this is high. So I'm gonna guess they'll offer me $25,000 for it.

Here would be the numbers:

New Vehicle Price: $26,387

Trade In: $25,000

Owed on Trade In: $23,637.57

Tax: 6.25%

Interest Rate: 3.29%

Loan Term: 60 Months

Monthly Payment: $454.46

Would it be worth an extra $36 a month and two fewer months on my loan for theoretically the same exact truck, except for a V8 instead of a V6, 4WD instead of 2WD and a Z71 package. Plus an extra year on my warranties since this is a 2018.

In a dream world, could I get the dealership to offer me $26,000 for my current truck and get the payment to $435.

What do you guys think of all this? I think it's probably impossible, but I still e-mailed my sales rep at Holiday Auto to inquire.