What should i do?

[holtk5]

Hi all

This is not IP related, but i just wanted to get some suggestions...

I am currently paying off my car (2003 Toyota Echo), still got $9700 left to pay, i bought it for $13,000 in Jan 2006. The interest rate is about 6%. I am paying $280 per month off it. The finance company wont accept extra repayments. Any extra money i pay goes into credit.

Am i better off financially finding an older cheaper car that i can pay off quicker,or stay with what im doing now?
Thanks, Kate

 

[Simon]

What is the current resale value? You might end up with very little to show for it.

What are your goals? Why do you want to remove this debt? Is it to get into investing?

Can you do both?

 

[GoAnna!]

At the rate of $280 per month when will it be fully paid for?

What penalty do you pay if you pay it out early?

Do you have a PPOR loan?

 

[twobobsworth]

I would just stick with what you've got and try to avoid the temptation of upgrading in a few years. The used car market has been pretty woeful the last 3 years. Your resale value will be poor and then you have to find a reliable car for cheaper. Stick with the toyota.

 

[holtk5]

What is the current resale value? You might end up with very little to show for it.

What are your goals? Why do you want to remove this debt? Is it to get into investing?

Can you do both?

I havent checked up on the resale value. I was just interested to see what my other options were. Extra money to put into our home deposit and get our PPOR. Pay as much as we can on that, to then purchase out first IP.

 

[letiha]

Why don't you stick the money in a high interest account such as INg/ NAB I saver etc, they pay more than 6 % interest so your extra money is better off in there.