Does paying off a car early at the cost of my savings make sense? : personalfinance


So I have about $13000 in savings which is what’s left of the loan. I pay about $260 a month, about 4 years left on the loan and that’s with the gap insurance and interest. I think the loan was for 6%. My wife and I are lucky enough to have landed well paying jobs before this all quarantine happened and are at no risk of losing our jobs. I saved up these savings rather quickly thanks to my new job. We both together now make $100,000/year before taxes. Our only debt is this car and our house which is $1,000/month. Paying this car off would put us at $0 in savings temporarily but we still have about $5,000 in our checking account. Does it make sense to just pay it off right away?



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