At 21, I got a job making $60k/year pretax. I lived at with my parents for the first 6 months or so and saved up a lot of money. So I did what dumb 21 year olds due with money they’ve never seen before in their life.
Fast forward to my current situation at 23 and I make about $67k/year pretax. I have a 2018 Camaro with a $14,095 loan at 7.5% APR. Monthly payment is $341.29, but I'm paying $650/month to pay it off faster. The car is worth $13,400 - $16,000 (car merged into me on the highway and ran away so no diminished value claims in NC). I'm considering trading it for an $5000-9000 Grand Marquis/Town Car. What would be more financially prudent: paying off the Camaro fast or trading for the Grand Marquis? How do the numbers look for each scenario?
Let me know if I missed any details. I regret ever taking on car payments.
original posted by 2sjeff to r/personalfinance on Sun, 10 Mar 2024 07:32:22 GMT.