PAID UP!

[TICKLE ZOMBIE]

Made my last payment today! Paid off a 5 year loan in 3.5 years. My 2022 (bought new) has currently 38,000 miles on it. Definitely should be good to go for another 100K, and yes, I already had one transmission fluid and filter change.

At around 50K I will have the spark plugs and rear differential fluid changed (rear differential changed at 10K), and at 60K have the transmission serviced again.

HAPPY FRIDAY EVE ALL!!

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[21rangerCactus]

I paid mine off early.... The next month my transmission went out! Lmao
I had 115k at the time. Im at 124k now
But ya... Congrats man!

 

[DukeCanBuildit]

Made my last payment today! Paid off a 5 year loan in 3.5 years. My 2022 (bought new) has currently 38,000 miles on it. Definitely should be good to go for another 100K, and yes, I already had one transmission fluid and filter change.

At around 50K I will have the spark plugs and rear differential fluid changed (rear differential changed at 10K), and at 60K have the transmission serviced again.

HAPPY FRIDAY EVE ALL!!

That must feel good. Now, don’t go spending that monthly windfall in one place!

 

[Dr. Zaius]

Made my last payment today! Paid off a 5 year loan in 3.5 years. My 2022 (bought new) has currently 38,000 miles on it. Definitely should be good to go for another 100K, and yes, I already had one transmission fluid and filter change.

At around 50K I will have the spark plugs and rear differential fluid changed (rear differential changed at 10K), and at 60K have the transmission serviced again.

HAPPY FRIDAY EVE ALL!!

Congrats!

Maybe blow the next payment, that is no longer due, on yourself to celebrate the accomplishment and get something that you want but would not normally buy due to cost.

Then just keep making that monthly payment, but make it to yourself.

And then when it's time for something else, payments will be optional.

 

[NotBudule2]

Nice ! I have 8 more i think on my 21, but i had a pretty low interest rate so no real incentive to pay it off early... does it feel faster now that NOTHING is holding it back and YOU and YOU ALONE finally have the "birth certificate " in hand and not some silly bank ?

 

[NotBudule2]

Good news ! If you move to WV, you can get this plate!

 

[AzScorpion]

Congrats!

When I totaled my '19 they gave me enough from the insurance to cover the new Tremor because I had full replacement value on it. The only reason I had a loan still on my '19 was it was at 0% so there was no incentive to pay it off as I made way more investing it. Dennis @Dr. Zaius has great advise on taking the payment and saving and investing it. I did that when I paid off my mortgage at 44 and after having a good size safety net I added it to what I was already putting into my investments. Trust me time and compounding interest will accumulate your accounts to another level.

 

[Willier]

Congratulations

surprised you don’t run down to your friendly Ford dealer and turn it in and start a new payment plan!

 

[TICKLE ZOMBIE]

Nice ! I have 8 more i think on my 21, but i had a pretty low interest rate so no real incentive to pay it off early... does it feel faster now that NOTHING is holding it back and YOU and YOU ALONE finally have the "birth certificate " in hand and not some silly bank ?

I had a very low interest rate as well which really helped paying off sooner IMO.

Congratulations

surprised you don’t run down to your friendly Ford dealer and turn it in and start a new payment plan!

HA! Sort of thought about it.
When I first got my truck the plan was to “assess” at year 2030 if I want a new one or not and I think that plan is still on the table.

 

[got3fords]

Congrats!

Maybe blow the next payment, that is no longer due, on yourself to celebrate the accomplishment and get something that you want but would not normally buy due to cost.

Then just keep making that monthly payment, but make it to yourself.

And then when it's time for something else, payments will be optional.

That's kinda what I did. Biggest check I ever wrote in my life was the difference after trade on my new Raptor. It was kind of nerve wracking and liberating at the same time.

 

[Dr_Strangelove]

Congrats! It's a great feeling to know it's yours and better yet - you now make truck payments to the bank of TICKLE ZOMBIE (honestly I can see why you only have one customer...)

 

[Dr. Zaius]

That's kinda what I did. Biggest check I ever wrote in my life was the difference after trade on my new Raptor. It was kind of nerve wracking and liberating at the same time.

When you write a big check like that instead of focusing on monthly payment, it really makes you stop and think just how much you really want something that badly.

That's where you're balancing Interest costs vs Opportunity costs.

The Opportunity cost is where you have that money in an investment somewhere and it is actually making you money. Then you have to decide whether you're better to finance or pay cash.

Many times a manufacturer will offer financing that is below current market rate, but that often requires you to "buy down" the rate which is usually only helpful if you're just looking for a low payment.

0% does you no good if it tacks thousands onto the total cost of the vehicle.

If you had $50,000 sitting in a money market earning 4% APY, in 5 years that would be worth around $60k (assuming consistent rate).

So the Opportunity cost there is the $50k original amount could earn you $10k

If instead of paying cash, you took out a $50k loan at 4% over 5 years, your total cost would be $55k.

Your Interest cost is $5k

So if you financed instead of paying cash you would be $5k ahead after 5 years.

And then to throw all that into a loop there is the intangible cost of dealing with making a payment every month.

Our dishwasher recently took a dirt nap.

Our new one came with 12 months 0% interest at no additional cost.

We paid it off after 2 months just to avoid messing with the payment.

And that's the end of today's totally worthless Money Ideas from Dr Z.

 

[AzScorpion]

When you write a big check like that instead of focusing on monthly payment, it really makes you stop and think just how much you really want something that badly.

That's where you're balancing Interest costs vs Opportunity costs.

The Opportunity cost is where you have that money in an investment somewhere and it is actually making you money. Then you have to decide whether you're better to finance or pay cash.

Many times a manufacturer will offer financing that is below current market rate, but that often requires you to "buy down" the rate which is usually only helpful if you're just looking for a low payment.

0% does you no good if it tacks thousands onto the total cost of the vehicle.

If you had $50,000 sitting in a money market earning 4% APY, in 5 years that would be worth around $60k (assuming consistent rate).

So the Opportunity cost there is the $50k original amount could earn you $10k

If instead of paying cash, you took out a $50k loan at 4% over 5 years, your total cost would be $55k.

Your Interest cost is $5k

So if you financed instead of paying cash you would be $5k ahead after 5 years.

And then to throw all that into a loop there is the intangible cost of dealing with making a payment every month.

Our dishwasher recently took a dirt nap.

Our new one came with 12 months 0% interest at no additional cost.

We paid it off after 2 months just to avoid messing with the payment.

And that's the end of today's totally worthless Money Ideas from Dr Z.

Not worthless at all!!

My '19 Ranger at 0% was still a better option than taking out a loan and IIRC I only lost $250 by taking the 0% option. I made that up in less than a month investing it and then multiply that X's 5 years and yeah it adds up.

Unless the interest rates were ridiculously high (over 7%) I would never put down a large chunk of cash because as you said you'll make more money even in a safe high interest MM account.

Heck even a MYGA (multi year guaranteed annuity) will usually pay out more and they work just like a CD but you're using an insurance company rather than a bank/credit union. The bonus with a MYGA is you can either take the dividend or let it ride for the whole term. Another bonus is you pay zero taxes and at the end of the term can roll it over into another one doing a 1031 exchange deferring taxes even farther out.

Why is this beneficial?

Because when you finally retire you're (usually) in a lower tax bracket and can now take the interest accrued and pay less tax. Or if you have other investments and don't need the money from the MYGA you can keep deferring it and pass it on to heirs sometimes tax free but that get more complicated.

 

[Dereku]

I have 15 or so left. But covid rates were so low I went with a 78 month loan at 2.25%. Figured why not.

 

[rang19ca]

Congratulations on paying off your Ranger. That is such a good feeling.

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