2million - My Journey to Financial Freedom

A Personal Finance Blog      ANNOUNCEMENT:2million has moved to www.2millionblog.com.     

Thursday, October 06, 2005

Finally finished paying off my car loan! Whats next?

Well I have finally done it. After 4 years and $8250, I have finally finished paying back my parents for my car.

Back in 1999, I came home from grad school for Memorial Day weekend to find my parents ready to take me car shopping - they were going to take back the car they were letting me use so they could give it to my sister and they were going to help me buy a car that weekend. By the end of the weekend I ended up with a 1998 Nissan Sentra. I paid out $5000 in savings that I had, and my parents paid for the rest of the car as a "loan" to me that I would repay along with the insurance premiums once I started working.

By the time I started working in 8/2001 the tab was $8250.

Car Loan Payments

Date

Amount

11/26/2001

$ 150.00

1/23/2002

$ 900.00

10/29/2003

$ 900.00

1/20/2004

$ 900.00

5/7/2004

$ 900.00

9/24/2004

$ 900.00

12/6/2004

$ 900.00

5/19/2005

$ 900.00

8/2/2005

$ 300.00

9/2/2005

$ 500.00

9/16/2005

$ 500.00

10/3/2005

$ 500.00

Grand Total

$8,250.00



I am very grateful for the "free" loan from my parents as well as the flexibility they allowed me to pay it back. You'll notice a gap of over 1 year in my payments that allowed me to focus on saving for a down payment for the house I purchased in 8/2002.

After some thought my current plan is to keep my car for 5 more years which I hope will allow me to save enough money to purchase my next car outright. I will begin to save $250/mo to put away for my next car. Over the next 5 years that should amount to $15000 plus interest for my next car. As I get closer to the time to buy my next car I plan to fine tune this savings target to ensure I have the amount I need to buy my next vehicle.

7 Comments:

  • I'm glad to hear that you've paid up your existing car loan. What's next? Will you let your wife take out another loan so you can buy her a new car?

    By Anonymous Auto Loans, at 3:41 AM  

  • That was great! Once you have paid off the loan, you will receive a certificate of satisfaction that the loan has been paid in full.

    By Anonymous car loan for bad credit, at 3:12 AM  

  • One of the first conduct all the way through which you canister birth making cash by the side of the internet is <a href="http://las-vilis.com/videoslot/”>online slots</a> along with you command emphatically catch a glimpse of to facilitate this is easy, after you arrange a quantity of encounter at the back you, aim this <a href=http://las-vilis.com/videopoker/”>videopoker online</a>

    By Anonymous live casino, at 4:46 AM  

  • Thanks for your article, pretty useful piece of writing.

    By Anonymous www.leon-3d.com, at 7:03 AM  

  • So proud!!!

    You know most people don't ever pay off their cars... they just keep on trading for years and years just making payments. If that same money was applied to an investment of some sort every month instead of a car payment, there's no telling how much money could be saved. Especially for folks that have bad credit.

    Cheers!

    By Blogger Anne-Marie, at 5:05 PM  

  • Keep it up; keep posting more n more n more.
    usedcarloancalculator.net

    By Anonymous Anonymous, at 1:00 AM  

  • I feel ecstatic I found you website and blogs. interestratesforcarloans.net

    By Anonymous Anonymous, at 2:13 AM  

Post a Comment

<< Home