I'm receiving my 2015 bonus in a lump sum at the end of this month, which would enable me, at 35 years of age, to finally own a car in the free and clear.! My plan is to upgrade to a crossover or SUV in about 5-8 mos. Which is my better option:
1) Pay off loan completely this month
2) Pay off all of it but around $2000, which would allow me to continue making regular payments until July
3) Pay minimum payments of $282
I have about $11k left on loan from CarFinance at around 8.25% interest. Its a 2012 VW Jetta TDI, which is part of a massive emissions scandal currently, normally the car would be worth $13-14k right now, but presently its worth around $9-10k--but I'll probably get some sort of settlement from VW at some point to make me whole there.
My average age of credit lines is 89, 62 and 62 mos. This loan through CarFinance is a refi I just did in August, i had a loan from GM Financial for 14 most at 16% interest.
Also, I have a car respossession that is coming off my reports this month.
FICO 8 Scores:
EQ 642 TU 662 EX 645
Scores as of 5/18/16: EQ 674, TU 653, EX 635
