how many of you pay monthly for your ram?

im going to be getting some money soon and i thought id try to pay my truck off so i wouldnt have to make payments anymore but my old man is telling me not to do that. i dont see why but he said keep paying what ever i pay each month and save my money orinvest. the way he see's it would i rather have 6000 in the bank and being able to do anything i want with it or 6000 into a 1996 truck? if something happens i have cash but if i pay the truck off then something breaks i wont have money to fix it. i guess i see his point but i said well if i pay it off then the 300 a month i pay id save for that rainy day...

i guess i wanted some advice and also feel free to post how much you pay per month for you ram.

i pay $140 every 2 weeks which avg. to about $303 a month+$310 a month on insurance. 2 1/2 year fin. i owe about $6100

 

holy christ.. 310 a month for insurance?? what are ya.. 16 yrsold with10 DWI's?

umm.. i see what he's saying.. id rather have 6 g's in the bank then pay off that truck.... i was in your boat about 4 months ago.. had some money and wanted to do something with it.. i paid my truck off and it lightened up what my monthly expenditure was.. but ,, (and this is NOT an insult) i could probablly that money back if i really needed it by sellin my truck out right.. and ,, again, this is no insult.. but im not sure if you could get 6K out of that truck if you were to sell it

in my case i would .. almost 90% sure never get rid of my truck.. and i still have $$ in the bank so thats what I paid mine off..

i think your dad is right in this case.. save that money.. its easier to SAY your gonan save that 300 a month now but when that actually happens its tuff to say.. i was paying 290 a month for my ram and told myself id save that every month after paying it off.. but damn.. that new bow was lookin too tempting.. and thats what i saved for. lol

 

You would be wise to listen to your father. Check out http://www.daveramsey.com
Once I get my finances straight, I will never borrow money for a vehicle ever again.

 

That depends. If the return on an investment is more than the interest on your loan, then you might come out a little ahead. But if the return is less than the interest, then you might as well pay it off. As for payments, I make payments to myself monthly into a separate account set up just for the next auto purchase. That way I can pay off the next auto instead of making interest payments to the bank.

 

damn.. thast wicked smart..

scratch what i said.. listen to that dude.

 

I have 6 vehicles (3 dodge ram 2500's)freeand clear and I pay 220/month for insurance (CA and a DUI).

I aman Account Executive for a Equipment Finance Co(lease big things for big companies with big dollar amounts), used to be a Mortgage Broker, before that financed auto loans, and have a minor in finance.............

If you buy a vehicle new, Don't use financing as this will put you upside down at some point in the term. On a side note buying a new car is not too smart in the first place.

If the vehicle is used---it depends on what you are going to do with your money otherwise.---It depends on the alternative. If you are going to just have the money sitting in a savings account earning 2-4%...this doesn't make sense. Lets say you are getting 2% interest on the 6k in the bank, but you are paying 7% int on the car loan, well overall you are -5% (you are paying 5%) on the 6k. This is still better than not having the interest bearing account to offset the cost, but its not great. If you can get a higher return on your cash than the interest you would be paying, then finance.If you are not getting a higher yield on the cash you are retaing than the cash you are financing, then dont finance. The yield on the cash retained in
APY(x) and the cash financed (auto loan) is APR (y)
If APY(x) is greater than or equal toAPR (y) then fianance.
If APY(x) is less than APR (y) then don't finance.

To give you an example you buy a ram 1500 for 6k, fix it up and flip it for 8k 6 months later. You just made 2k/6 months or a gain of 66% Annual Yield. So..If you can re-invest that 6k in a business venture, in flipping another truck, in buying and selling any asset and posting a gain of greater than the interest rate on your truck, then do it, but if you are just holding on to the money in the bank this makes no sense.

Leasing: does not make sense unless you plan on changing vehicles less that every 3 years. This depends on the mileage limitations and restrictions, but generally leasing saves you money if you are going to change to the newer model every couple of years, but otherwise is a waste of money. Leasing equipment that will be obsolete makes sense, but dodge trucks do not become obsolete.

On another side note, especially given the current economy, this problem of having 6k in the bank and not knowing what to do with it----this is a very good problem to have-----Good luck!

 

Investing is always risky... are you willing to lose money to make money? Personally... I would rather pay off my debt before making an investment.

Another alternative ifyou want to keep some money in the bank, consider making additional/larger payments on your truck. Before you do this, make sure that the additional money will be applied to the principle of the loan. If so, this will reduce the term of your loan - and allow you to keep some money in the bank

Cartman

 

Dude you need to go get dave ramsey Total Money Make Over book...........If i read that book when i was your age and followed the edvice,i would have alot less head achs.

 

I paid cash for my Indian 2002 Scout so when my Car died againI picked up my Ram 01 Quad Cab w/8' bed 1500 for 8,250 I thought that was a good deal but now I think I paid just a tad over the KBB private owner sale.
Anyway I pay $215 per mo.
I have no regrets thou I really like my new wheels.

 

118.43 per month...
i took out a 5000 loan...
4 years i think..?
9% interest
(it was a personal loan -very good rate )