Automotive

Advice on a car finance payments

  • Last Updated:
  • Jul 11th, 2020 4:13 pm
[OP]
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Jul 8, 2009
2837 posts
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Montreal

Advice on a car finance payments

Hello I really need some help. So I financed a car last fall for 15k. The car is a Kia Forte nothing high end but it was my only way to get a car because of some financial issues. I had to finance it on not very good terms but U had no choice.

Now a few months later my situation is better and have about 10k left on it. Would it be better for me to pay off the car completely or keep financing it for the next 5 years? As I said it is a Kia Forte which will not be worth much in the next 3 years.

Thanks
Last edited by WorldIRC on Jul 11th, 2020 1:24 pm, edited 1 time in total.
Reason: Corrected title and content to reflect "financing" as per OP
9 replies
Deal Addict
Oct 25, 2008
2294 posts
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North York
danzerino wrote: Hello I really need some help. So I leased a car last fall for 15k. The car is a Kia Forte nothing high end but it was my only way to get a car because of some financial issues. I had to finance it on not very good terms but U had no choice.

Now a few months later my situation is better and have about 10k left on it. Would it be better for me to pay off the car completely or keep financing it for the next 5 years? As I said it is a Kia Forte which will not be worth much in the next 3 years.

Thanks
There's conflicting information in your post did you lease or finance your car?

If you leased your car then I am afraid there is no way to just "pay it off" as it is a contractual obligation. You can try lease buster if you no longer need the car.

If you financed your car and thinking whether to pay it off or not - it will depend on the interest you are paying. If you are, say, paying a hefty interest payment 7%-10% or even above, I highly recommend that you pay this car loan asap.
Deal Addict
Jan 8, 2007
2601 posts
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Calgary
Ethan15 wrote: There's conflicting information in your post did you lease or finance your car?

If you leased your car then I am afraid there is no way to just "pay it off" as it is a contractual obligation. You can try lease buster if you no longer need the car.

If you financed your car and thinking whether to pay it off or not - it will depend on the interest you are paying. If you are, say, paying a hefty interest payment 7%-10% or even above, I highly recommend that you pay this car loan asap.
You can pay a lease off any time, just like finance. You can call up the lease company and ask for today's Pay off quote, write a cheque in that amount to them and you have yourself a car.
[OP]
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Jul 8, 2009
2837 posts
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Montreal
Ethan15 wrote: There's conflicting information in your post did you lease or finance your car?

If you leased your car then I am afraid there is no way to just "pay it off" as it is a contractual obligation. You can try lease buster if you no longer need the car.

If you financed your car and thinking whether to pay it off or not - it will depend on the interest you are paying. If you are, say, paying a hefty interest payment 7%-10% or even above, I highly recommend that you pay this car loan asap.
Sorry for not being clearer. Yes it is a finance.
Deal Addict
Jul 8, 2013
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Red Deer, AB
What is the interest rate that you're paying? Do you have any other debt?

I'm of the opinion to pay off the debt if you have excess cash.
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It's really that simple.
Deal Addict
Jul 13, 2009
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OP needs to provide way more details.

Model year of car?
Interest rate? Through a bank or private lender?

Financing cars are the worst necessary evil. Cars depreciate faster than anything, but at the same time it does allow access to seemingly affordable options.

Do you have the cash to pay it off? If it's a car loan at a high rate like 10%, getting a line of credit for $10k at 5% would be a huge advantage.
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Jan 31, 2006
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Toronto
bhrm wrote: OP needs to provide way more details.

Model year of car?
Interest rate? Through a bank or private lender?

Financing cars are the worst necessary evil. Cars depreciate faster than anything, but at the same time it does allow access to seemingly affordable options.

Do you have the cash to pay it off? If it's a car loan at a high rate like 10%, getting a line of credit for $10k at 5% would be a huge advantage.
Korea car depreciate faster then Japanese car
Deal Fanatic
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Jul 26, 2007
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Toronto
Knowing it's a Kia, his car is financed at 0%, so why?

There was good article on CBC where a Hyundai dealer in boonies got one similar person like OP in a multiple trade-in because similar logic of car will be worth nothing or don't like the car or car have problems, and easy as jumping them into a shiny new kia/Hyundai which you will develop same issues after few years. Best part was the so called victim in the article made big stink because after few years she owed Hyundai over $80k and guess what, she still don't like the current car she is driving.
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Jul 13, 2009
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cgtlky wrote: Korea car depreciate faster then Japanese car
All cars depreciate fast (aside from collector's, rare ones etc).

Also that's just a generalization, times are changing.
Deal Guru
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Jul 12, 2003
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Toronto
Buying a used car for 15k, I strongly doubt the finance rate is good. Probably over 5% or insanely more.

OP, if you have the money, pay it off. You will be probably buying a $15000 car for $20000 including interest adding up.
Especially it is a Kia which the car doesn't hold any good value. Pay it off before the car become a negative asset. (means your loan is more than what your car is worth after some years)
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