Is it good to pay off a car loan early? | Paul Hutchings

What a great question! There's TONS of conflicting advice out there in the world and the DANGER is taking advice from the wrong people.

If you were a chicken trying to get home safely, to your henhouse, after a trip to the woods, would you ask a fox for advice?

Obviously not, unfortunately that's what most people do when it comes to this questions of is it good to pay off a car loan early or not.

Look, I'm a simple guy who went from living in a trailer to building a live of financial independence in just 10 years.

When my wife and I first set out on this path to freedom, this was one of the first questions we thought about and researched for ourselves.

Is it good to pay off a care loan early we wondered...

In this video I share what we did, why we did it and how it was one of the best decisions we ever made on our path to freedom.

I hope this video is blessing to your life, family and future.
Check out my free digital marketing and money making resources...

#financialliteracy #debtfree #paulhutchings
************************
************************
************************
The Grow Rich Mastermind Collection - The most important books that empowered me to retire at 40 AND a free daily mastermind where you can plug into an AMAZING and successful community of people who are determined to help set you free!
****************************
****************************
*FTC LEGAL DISCLAIMER: This video and description contains affiliate links, which means that if you click on one of the product links, we may or may not receive a small commission to support the channel and creation of future videos.

[brandondavisful]

I paid my truck off 4 yrs early and I'm excited

[donnastarring]

I doubled my payments and paid it off a month ago two years early... Wa-HOO!!!

[AffiliateMarketingLeaders]

We have gotten some amazing deals on 1 year old cars, now one of them did have severe hail damage... but it was totally cosmetic.. we got it for 9500 dollars one year old!

[Veroniqueaerts]

Thank you Paul for this information. You inspire me with so many ideas.

[sosyoutubechannel]

Good advice, especially to teach your young ones going out into the world. You don't need a shiny new car and payment.

[JasonFulgham]

Thanks Paul! Was hoping this was the answer.

[bobpage]

I just paid off my car on Friday, made the balloon payment and its done. I'll have to rebuild my savings (an easier task now), but it was a brand new car when I got it in 2021 so its only 3 years old now, plenty of life left in it. Freeing up £400 a month in credit payments will be a huge boost for my finances considering the general financial situation at the moment with interest rates and such. With the car payments now gone, my finances have 're balanced' back to pre interest rate rise on my mortgage in November, and I'm quids in. Feeling much better :D

[CgScents]

I think it depends on your situation. My wife doesn’t know how to change a tire and works an hour drive away. I am decent enough with cars to communicate with a mechanic and work 20 minutes away. For her, the new car and warranty makes more sense. I can handle a cash car but it isn’t ideal for everyone IMO depends on your situation and it would be a pain to worry about two cars and all that mess to save a few hundred a month because there’s still repair bills.

[kimberlylewis]

We paid off our car in one year by making double payments! It was wonderful to own it and get the car title!!

[gmartin]

I’ve been thinking about paying off my car loan completely. Another thing I noticed that you mentioned was about the cash vs cc spending. Now I don’t buy anything on credit, I use one card, my blue cash Amex. I use it for everything as I get a cash back bonus, rather than using cash itself, however, I’m noticing the psychological part of it, where I am swiping the card may still be a bit different than seeing it dwindle down in my checking account… 🤔

[AkronKid]

I agree with everything you said! But. What you did not mention is how paying off loans early can highly affect your credit score.

[cherahsBroll]

Thanks, I’ll be deciding soon whether to purchase a new car through borrowing or just keep riding my bike until I’ve saved up enough to purchase a quality used car.

[cafsixtieslover]

I took out a three year loan when I got my last car. I took out a loan for half of the cost of the car and it was not a lot of money every month but I was in a position to pay it off after three months so I did - I was happier with it paid off. I only ever buy used cars, a year or two old as the depreciation is so much less. My car is now over ten years old and runs like clockwork. A salesman from my garage rings me up regularly to see if I want to change it and I say no. As long as it is reliable I will keep it.

[kingfancy]

My mechanic once told me “You’re either gonna have a car payment or you’re gonna have a maintenance payment” but a cash car aka beater/lemon and you’re gonna be in the shop at least once a month

[Index-o]

What was the impact to
your Credit score? and did you
Reapply for another form of loan to further your Independance
Dreams as you did mentioned a new home from what
You Previously had.

[fredyflores]

Paul hey how's it going!
I have a very important question. By paying off your car loans faster; did you or can you save money on the loan? Mean did the loan or apr Interests when down?

[anonymous-fgfn]

If you had a 8500 car loan with 1.92% interest paying 400 a month, would it be best to pay off in full or take that 8500 and invest in a sp500 etf with a higher growth rate and continue the car payments?

[Jose_Lima]

If you have 30k cash working for you in the market at 10% (or anywhere earning you interest), it really does not make mathematical sense to take it out to pay your car, if you can get a loan considerably below that, like the normal 3-5%...But of course, if you keep those 30k in your bank in cash earning 0%, you really should not get any loan with interest. Just do the math, do not believe what any youtuber tells you.

[bundy]

I’m paying my loan off early & getting charged more interest than principal by my credit union. Should that happen?

[everquestfan]

Is it a bad idea to use a car loan to build credit score? i got the car loan to raise my credit score. Everything is based on credit score now. Is there an optimal time frame to pay off a loan to improve credit score? Or is it just a set amount of increase and on time payments over time so no need to pay off early? I realize interest sucks but i got the loan to build credit score.