Loan paid off!

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wildlifemad
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Loan paid off!

Post by wildlifemad »

We took out a flexible loan to buy our car & took it out over 4 years (so no pressure payment wise). As it was flexible you could overpay on it which we have & as of Monday we have cleared it totally 19 months earlier than it was due & saving interest into the bargain, although it was a low interest rate we saved even more. I enjoy these sort of challenges as it focuses your mind. We did it on our mortgage & that finished nearly 6 years early.
Now I have to find something else to focus on!!!
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lancashire lass
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Re: Loan paid off!

Post by lancashire lass »

)like( well done. Paying off my mortgage early was my original plan when I took on a second mortgage when I moved, but sadly, life and circumstances change ... instead I ended up with a loan to pay off an uncontrolled debt after redundancy and having to take on a lower salary elsewhere (and kept frozen since the financial crisis which means it doesn't keep up with the rising cost of living) which just wasn't enough to cover everything especially when things go wrong. My loan was also low interest with option to pay earlier but as the interest is already calculated for the duration of the loan, paying off early won't actually save me money though it would be lovely not to have to pay it and start saving instead! The other option is having a "holiday" payment where I can request not paying it one month should something happen - such as the unexpected repair bill on my car. The downside is that of course, it is added on to the end of the loan but has been a life saver without increasing the set monthly payments.
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Meanqueen
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Re: Loan paid off!

Post by Meanqueen »

Well done, WLM. You had the discipline to do that, may people don't and that's how they get in a mess. Something else to focus on. How about putting money away fromk now, on a regular basis, and save up for your next car. I change mine every three or four years, as soon as I have a newish (second hand) one, I start saving for the next one, so I have enough cash to go to the garage and pay for it.

When I retired I still had a mortgage, I stopped spending on frivolous stuff, and managed to save enough of my pension to pay the mortgage off four years early. Now I am laughing, it was worth the effort.

Talking of focus, I have a lovely Ford Focus Estate.

Ilona
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wendy
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Re: Loan paid off!

Post by wendy »

Another one saying well done.
Paying a debt nowadays, sometimes, isn't a priority
http://www.busheyk9.co.uk

If you can't be a good example........
you will just have to be a horrible warning
Gwenoakes
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Re: Loan paid off!

Post by Gwenoakes »

Huge well done from me too. We did the same, it was hard work, but worth it.
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Richard
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Re: Loan paid off!

Post by Richard »

Good for you, nice one.

I'm about to pay one off, but by selling my Camper.
I paid 50/50 Cash and Loan three years ago, my loan is only £400 below the amount I borrowed !
I shall have enough to buy something for maybe £2,000 which will do me.

Hard to shake off.

But well done you )t' )t'

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wildlifemad
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Re: Loan paid off!

Post by wildlifemad »

Thanks everyone!! As I said I like the challenge.
MQ, your suggestion of saving up is something we are aiming at, the car we've just paid for is 3yrs old in November, previously we changed it at about 18 months old, always got a good price for them & the loan (this was the 3rd car) was always cheaper than the last one interest wise so always made sense that we were getting a new car for less payment on the loan. When we bought the cars we bought them pre-registered, for those that don't know it is a really good way to get a new car with no miles on the clock but the garage have registered it first so technically it is 2nd hand! The difference being you save the VAT & registration fee, etc.
Thanks again everyone.
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Meanqueen
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Re: Loan paid off!

Post by Meanqueen »

Another thing you can consider is to buy an ex Motability car. I have had three now, all low mileage, all serviced, and under three years old. Great savings to be had.

Ilona
nicklincs
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Re: Loan paid off!

Post by nicklincs »

My current car a ford focus estate is also an ex mobility car, ive had it 7 years and it came to me also low mileage ,serviced and good condition. I have to say its been the most reliable car i have ever had, its also lovely to drive and very comfortable.
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KarenE
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Re: Loan paid off!

Post by KarenE »

Where do you buy ex motability cars from?
Karen
Alpha chick to: Smudge, Matisse and Bluebell
Chief servant to Marley the cat
Remembering Weeps, Rexie, Sage, Cassie, Toffee, Captain Gabby, Commander Nugget, Ronnie, Juno, Special Poetry and Reading Casper, Tigger, Tophenanall Rembrandt, Chestnut, Tiddly, Willow, Mango, Coco, Dorian Grey and Pokey.
Also my lost furries Charlie and Jasper
nicklincs
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Re: Loan paid off!

Post by nicklincs »

Mine was just from an ordinary car dealer.Manly motors near heathrow.
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Meanqueen
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Re: Loan paid off!

Post by Meanqueen »

KarenE wrote:Where do you buy ex motability cars from?


I got my cars from Perrys at Doncaster. It's a large dealer with hundreds of cars. I go there because they are more likely to have the car I want. I have my own criteria when buying cars, and sometimes have to wait until the exact one is available. I will not be hurried into buying a car if it is not the right one. I plan ahead, and change my car before it starts needing expensive repairs.

Ilona
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KarenE
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Re: Loan paid off!

Post by KarenE »

Ah, thanks. I thought for a minute you had to go to a specialist dealer. I'm probably going to be looking for a new car next year so I'll bear that in mind. Thanks guys
Karen
Alpha chick to: Smudge, Matisse and Bluebell
Chief servant to Marley the cat
Remembering Weeps, Rexie, Sage, Cassie, Toffee, Captain Gabby, Commander Nugget, Ronnie, Juno, Special Poetry and Reading Casper, Tigger, Tophenanall Rembrandt, Chestnut, Tiddly, Willow, Mango, Coco, Dorian Grey and Pokey.
Also my lost furries Charlie and Jasper
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