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Car financing question?
LibertyUnites
Posts: 1 Newbie
in Loans
Loans have always confused me so I'd appreciate some help figuring out if this new opportunity is worth it...
I am making payments on two vehicles: a 2002 F-150 and my wife's 2010 Kia.
I bought the first for $18,053 a few years back and only have $6184 remaining until it's paid off. The loan I got was 60 months @ 7.74%. All told with interest the truck will cost me $21,828. Monthly payments are a little over $363.
The Kia cost $20,307 on a 72 month, 7.29% loan (with interest the total will be $25,131). We've only made 5 payments on it, so 67 remain meaning we owe around $23,386 on the car.
Now my question is, because of my military service, I am eligible to receive up to $25,000 from USAA @ a measly 2.0% interest rate. Should I take the loan in full and pay off what I can? Should I only take enough to pay off the Kia? Is doing this worth it at all?
My main concern is that in taking this new loan, am I still paying the interest (ex. the roughly $5000 in interest I will pay on the Kia after 72 months) if I pay off the auto loan? Or do I avoid that by paying it off 5 payments into the contract?
Numbers and me don't mix well so I'd appreciate any advice anyone can lend me.
I am making payments on two vehicles: a 2002 F-150 and my wife's 2010 Kia.
I bought the first for $18,053 a few years back and only have $6184 remaining until it's paid off. The loan I got was 60 months @ 7.74%. All told with interest the truck will cost me $21,828. Monthly payments are a little over $363.
The Kia cost $20,307 on a 72 month, 7.29% loan (with interest the total will be $25,131). We've only made 5 payments on it, so 67 remain meaning we owe around $23,386 on the car.
Now my question is, because of my military service, I am eligible to receive up to $25,000 from USAA @ a measly 2.0% interest rate. Should I take the loan in full and pay off what I can? Should I only take enough to pay off the Kia? Is doing this worth it at all?
My main concern is that in taking this new loan, am I still paying the interest (ex. the roughly $5000 in interest I will pay on the Kia after 72 months) if I pay off the auto loan? Or do I avoid that by paying it off 5 payments into the contract?
Numbers and me don't mix well so I'd appreciate any advice anyone can lend me.
0
Comments
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You would be better finding a US forum as there may be different rules from UK loans and US loans.
Personally if it was me, I'd get a settlement figure to pay the Kia off, saving quite a bit of interest. The truck (its not a truck its a van!) doesn't have much longer to run so you probably won't save much by paying it off or some of it off.0
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