Paying of the car loan increases your cash flow

I could not agree more with you Joe. Debt is crushing!!! I have been trying to do both but honestly every time a debt disappears it feels amazing. Another absolutely fantastic video!!!

I like how you have ideas about different scenarios, but also point out the human factors.. Good stuff.

This was an amazing video and you inspired me to use your format to see what would happen in a scenario of paying $20,000, $5,000 or $0 upfront and investing the difference over that same ten year period.

Awesome video, very informational .

Exactly what i wanted to see.. Thank you!!

Great vid Joe!

The old adage that debt is only useful to those who don't need it rings true. Especially for an auto, a liability, loan, I would only consider holding onto the debt it I literally had savings to just pay it off or a level close to that. Then it is just a tactical decision based on the interest rate, which is bound to be low at that point. The only disagreement I'd hav is making sure you have a 6 months savings first. Having your car repossessed but enough savings for rent and food before you can get a new gig sounds like a good trade.

Great video, is it possible to make that spreadsheet available. It’s really helpful. The math makes having the loan easier and waiting to pay it off. Would you recommend that option if you also have the cash available to pay off the loan at any time?

If the stress of debt is that crushing upon you, I'd pay iff the car asap stress can negatively impact your physical health, cause poor performance at work and at home. Less stress, stronger health

Pay car loan early

Good point !

Can you make your spreadsheet downloadable? I was hoping to plug in a 2.19 Interest rate on a 30k car loan. Excellent video by the way!

The only discussion I would like to start is what if u have to take money out of a index fund to pay for the car in cash or something like that. Your rate of return would drastically decrease due to the fund starting at much lower rate. Starting this at 50,000 vs 30,000 (assuming a 20,000 car purchase) would yield much different results

I like this scenario. However, not once did you mention the depreciation of said vehicle. Also, I think the question needs to be asked, "Would you borrow money to invest?" I know I wouldn't and investing without paying the car off as fast as possible is doing just that. Great topic for discussion.

Joe. Have you done a video on when it's wise to rebalance? I am way overweight in 2 funds inside my 401k. But, I have heard rebalancing is not always a wise move depending on the account.

This is interesting as I have just bought a car and I'm still investing.

My Autoloan is near 8%, other than that your other parameters exactly match mine! Loan is 19k 72months. I usually put 500 in Roth a month, but I messed it up holding a bag with PDBC@15.8 average, so I'd rather pay off my loan sooner and come back to Roth IRA in couple of years

I owe 30 000 at 11 percent im psying 660 a month ,im investing about 1300 a month im here to see if I should pause my investments and get this loan done i have no more credit card debt im 44 yrs old so i want to go heavy in investing. With that said, let me watch this video

If you have a low interest auto loan, say less than 3%.. I wouldn't pay it off. The rate of inflation is much higher. Invest and just pay the loan with weaker dollars.. 🤷‍♂️

Is it a bad idea to get a personal loan to pay off car loan . Fyi I longer want this car due to a few reasons. What do you suggest I do Thanks

Why doesn't anyone calculate what you owe in income taxes at end of year? Part of the investment gains go to government not all to you.

I got a question bro…I wanna sell my car, I owe 10k on it but it’s worth over 25k…should I finish paying it off first or should I sell it to a dealership and just keep the difference??…thanks

My car is 7 % interest,I invest a very small portion besides my 401k on the job..I pay double on my car loan,calculated being payoff within a yr..

What do you think about plug power stock I seen a few say buy it before it goes up????

Whats all that backround noise hard to focus

Okay. Too many holes in the math. First, the average new car is going to be $24,000.00 to 28,000.00 in 2020. Most people are going to fall in the 5% interest bracket since covid. So $24,000 for 5 yrs. will cost $30,000, and $28,000 will cost $35,000. The second part of this is "where do you live". If you are near Detroit, where there is a lot of snow fall each year, AND TONS OF SALT on the road to help rust the vehicle, coupled with high traffic, pot hole that eat front end parts and tires, brakes and batteries, your vehicle cost will be much different over 10 years as opposed to somewhere like Knoxville, TN In the 1st example a 36 month lease, where there is bumper to bumper warranty is far less. At 28,000, the payments are $467.00/mo., as opposed to a lease of $235.00/mo. Remember this $28,000.00 car will be worth about $1800.00 if you buy it. By leasing, if the car goes down, I drive another new car until they fix mine, and no payment for tires, batteries, brakes, etc. (I paid a little extra to have 50,000 miles in 36 months, with full warranty for 50,000 miles.)

Can you do one about paying off your house vs investing?

Joe, is your house haunted..it's that time of year and I hear a child-ghost or two. I didn't watch the credit card vid, or it was unremarkable. LOL Paying off a credit card only makes sense if you don't run it back up again which most do, especially in today's environment. As for this vid, I recommend doing both as compounding is your best friend for retirement. Doesn't have to be the remainder after the car payment but at least a couple hundred/month. The faster you pay off that car the better, but let compounding do its thing.

I owe $5500 on my car... Should i just pay it off in one shot?

The CC company knows they won't make money if every customer pays them off every month. Luckily for them, plenty of consumers will not (even though everyone probably intends to when they get the card). These companies know many of us better than we know ourselves in this sense. If you don't really know yourself, using credit is playing with fire.

Is this real life?

As we approach a recession, I am choosing to pay off debt and invest less now.

Why would you pay off 300 to have to pay 600 every month?

To pay off 8000 car with 2.5% or invest ahhhh

Go to the point bro make videos shorter