Help with paying off a auto loan ?

[howellco2]

Ok here it goes gonna be a semi long post I have two cars both are financed at DCU

Car 1 .. owe 5753$ 2 years left on loan pay 289.00 a month at 4.29%
Car2 ... owe 5980$ 3 years left pay 189.00 a month 4.29%

I have 20k in a hi yield saving account making 2.45% interest

I can move 12k to another credit union I have a borrow the 12k back at 3% and pay off both cars so no auto loan and titles are mine loan would be for 3 years @ 3% payment about 375.00 vs the 4 something i pay now

Does it make since to do this or just leave it the way it is

[Anonymous]

Since you have already paid most of the interest on both of these cars it probably makes more sense to leave them alone.  When I have looked into paying off cars that only have 2 years left I have found that there isn't much interest savings.  Of course there could be other factors to consider based on your personal financial situation but personally I would leave them alone.

[Anonymous]

I agree with the other poster..  Remember, cash is king and I am sure you can find something that will yield you more than having it just in a savings account or using it to pay of loans.

To touch on the loans if you still want to pay them off after getting opinions, I'd pay one off if I were in your shoes.  You want to have an auto loan reporting on your file if you still want to maximize your credit file.

[Anonymous]

If the scores in your signature are accurate, then I would take the money out of savings and pay both loans down to $1k and let them ride out. This will help you make your 2019 goals. 

While you might not save much in interest at this point when you are ready for your next purchase/loan - having a score closer to 750 (or higher) could save you thousands in interest vs your current scores. 

* I assume you are not needing cash from your savings anytime soon. Obviously, don't put yourself in any type of financial danger. Also, this advise is only for the hopes of bringing your scores up to your goal. If you were already at 750+ then I would agree with the other posters that you should leave it as is.