Car Loans: To redeem or not to redeem

[Vicz]

Agree with u. If u r using that amount for some investments that can give u net returns which are more that the interest, then u sh'd invest instead. if not, if u redeem, that means u save the interest, which is also a positive return in that sense.

Example my case, i didn't intend to use this sum for investments because the market was too vlatile and at a high peak then, so i chose to pay for the car. I am enjoying a car thats called MINE for pass 2 yrs and am still enjoying it because i'm debt free and no fear for any uncertainties.

[Focusdude]

Yes, ultimately the factors we need to look at in any financial consideration:

 

a. interest (either payable or that can be earned)

b. liquidity (how easy to extract cash from the instrument)

c. risk (can the capital amount be lost either totally or partially)

 

I think it is important that financial management be covered in basic education today. Many people may be able to retire much earlier if only they knew how to manage their monies properly in the course of their working lives.

[Emils]

Thanks all for your views and advice. Guess I will continue with the original instalment plan and look for investment opportunities in the meantime.

[Deckbuild]

Just to check how's the car loan redemption works now? Saw a lot of 2012 cars for sale and I'm wondering are all of them paid on full cash or they had the loan redeemed before selling to dealers?

[Chucky2007]

Of course pay off the car loan if got spare cash... Common sense right? Why need to have loan and pay interest when can pay off easily... Unless its zero interest loan..