Paying off 28k loan in 2 years

[1prettyorchid]

Just financed a car yesterday (2021 Mazda CX-5 Grand Touring). Traded in a vehicle and got $6k towards my loan balance. That leaves me with $28,447. 

I want to pay this AGGRESSIVELY. I can put another 6k down next week. But I want to postpone saving and investing to pay this off in 2 years. Is that wise? I'm 38 and single. 

I have about 2 months of savings right now. I still will pay into my 401k. Also, Im one week out of BK so interest is 9.54% ( until I refi). Please advise..

[disdreamin]

This is only my opinion, but I'd keep the cash you mentioned in savings and just try to accelerate payments from your monthly cashflow. I would not clean out savings (if that is where the $6k would come from) to pay down the vehicle. I know the interest is painfully high, but running too lean on savings is a recipe for potential disaster. Good luck and hope you like the vehicle.

[1prettyorchid]

Thank you. I absolutely love it! I will be working part time to pay it off. But yes, some of the money will come from savings. 

[Horseshoez]

At nearly 10% interest paying it off quickly is definitely in your best interest.  That said, taking that money from your savings, which I assume is some sort of an emergency fund, is probably a bad idea.  That said, once you get at the very least a few months worth of cashflow saved, then dump every last extry penny you've got into that loan.

I would also consider joining a credit union now and then in six months, refinancing the remaining balance for a much more attractive interest rate.

Final comment, I'm looking at buying my wife a CX-5 Signature; how do you like your car?

[1prettyorchid]

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@Horseshoez wrote:

At nearly 10% interest paying it off quickly is definitely in your best interest.  That said, taking that money from your savings, which I assume is some sort of an emergency fund, is probably a bad idea.  That said, once you get at the very least a few months worth of cashflow saved, then dump every last extry penny you've got into that loan.

I would also consider joining a credit union now and then in six months, refinancing the remaining balance for a much more attractive interest rate.

Final comment, I'm looking at buying my wife a CX-5 Signature; how do you like your car?

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I currently bank with Navy. So I will try them in 6 months. They denied me this week so went with Cap One. 

As far as the car. Its a dream! Definitely got my monies worth! It's beautiful. I got the metal gray and parchment interior. 37 miles when purchased. 

[disdreamin]

I have a 2017 CX-5 Grand Touring in Machine Gray Metallic - still love the color. If I had it to do over again, I'd go for the turbo now that it's offered. The one place I feel the vehicle is really lacking is power, otherwise I've enjoyed it quite a bit.

[Loquat]

I agree with what has been mentioned. If the money is coming from your emergency fund then I wouldn't touch it...if not, I'd absolutely recommend paying it down.