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Old 09-07-2012, 04:51 PM   #11940
jgold47
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Join Date: Sep 2010
Location: Imported from Detroit
Posts: 1,262
My Ride: 2004 X5 3.0
Quote:
Originally Posted by RKiepper View Post
Just got $2,300.. Do I pay off the car and have an extra $140/mo.. Or..
There is this finance concept I always butcher but its basically the time value of money, or something like, a dollar is worth more in my pocket than yours. I imagine your interest rate is pretty low, so in a sense you are borrowing the banks money for pretty cheap. you could pay it off, but why? Conversely, if you could take that money and invest it could you make more?

however, there are these amortization and payoff tables you can find online that tell you when it makes more sense to pay something off than to keep making payments. You would be surprised.
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