Paying off my car???

GTI07 said:
incidentally, the amount i saved up equates to the amount i owe on my car, the amount i owe on my bond is way more than that. My initial thought was to pay the car off so i save on the interest i would have paid if i continued with the installments. Then take the R4500 i spend on an installment and save/invest that money. Just looking for views on how to make my R90K work best?
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Simple advice, as opposed to the rest of the posts - pay off your car, funnel the additional cash into an investment account or your bond. Have a financial advisor work out which is best for you. The calculations will have to be based on a relative return against an investment fund that suits your personal situation, so there is no one simple answer to that question.

But the simple answer to your question about the car, is to most certainly pay off that debt first and foremost...
 
Smooth Criminal said:
It's funny how everyone on this forum is either a financial, legal or relationship expert - especially when it's not their money or lives involved. Just do whatever you feel will benefit you financially.

If it were my money, I'd spend ~R50k towards paying off the car. That would leave me with R40k to play around with investments and the like, and free up close to R2500 in disposable monthly income by reducing the vehicle installments to ~R2000 p/m.

Anyway it's your choice and your money, so try and make it work for you.
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+1 Thats the best advice IMHO

Its good to pay of your car quick, you owe 90k but you will end up paying R140k+ over the next two years.(depending on the interest rate)
Its also good to have some cash flow so that if something happens you can get money quick.
 
what good investment portfolios can you guys reccomend?
 
GTI07 said:
what good investment portfolios can you guys reccomend?
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Far too vague a question to answer. You need to speak to a financial advisor, preferably independant - their time is free...;)
 
if you have the money then pay your car off now. you never know when you are going to be in the retrenchment situation again. why sit with a debt that incurs an interest of that each month.
you are sensible in saying take that R4500 and invest it. you are not seeing that money now so invest the R4500 for later when you may want a better car and you will perhaps have the full amount to go into the dealer and barter with and get a discount for cash.
i have always paid my bond off in as short amount of time as possible thereby saving the interest portion. even R100 more each month contributes towards the capital of the bond. i hate debt. i bought my car cash. saved the money first and then bought cash. now new out the box but it was bought cash. my bond is almost finished - bought my house 5 years ago and only have R40 000 left. i shovel every bit into it to get it finished.
 
Celine said:
if you have the money then pay your car off now. you never know when you are going to be in the retrenchment situation again. why sit with a debt that incurs an interest of that each month.
you are sensible in saying take that R4500 and invest it. you are not seeing that money now so invest the R4500 for later when you may want a better car and you will perhaps have the full amount to go into the dealer and barter with and get a discount for cash.
i have always paid my bond off in as short amount of time as possible thereby saving the interest portion. even R100 more each month contributes towards the capital of the bond. i hate debt. i bought my car cash. saved the money first and then bought cash. now new out the box but it was bought cash. my bond is almost finished - bought my house 5 years ago and only have R40 000 left. i shovel every bit into it to get it finished.
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And that is my end goal boet, free off debt quicker/earlier than the initial term.
 
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