What do you guys do? Mods or pay it off?

[Jonah52]

So as the title states, I was interested, for those of you who still have payment, if you just make your normal payment and do mods, or if you allocate any extra funds to make an early pay off.

I am currently in college with about 1.5 years left. I just bought my 07 Denali a few months ago and I have a 4 year loan, for $157 a month. I am trying to pay it off soon, while recouping funds from my down payment. Is it dumb of me to do mods before I pay it off? Most of the things I'm looking to do (HID's, led tails, res delete and tips) are little $200 or less (excluding maintenance). My dad has always said if you can't pay off a used car in 2 years you really shouldn't buy it, which I think is fair.

But I am just looking for your opinions on if I should make it what I want now and ride out my payment, or try to pay it off by the time a I graduate. Thankfully I won't have debt from school, but let me know what you guys think! I know theres a lot of wise members here...

 

[Monkeyman]

I'd do functional mods (HIDs, stereo...but not a "system", better brakes, etc) while I'm making payments. Mods for looks only (fancy tail lights, exhaust tips, aftermarket wheels) should wait until it's paid for.

 

[gobrowntruck21]

Put every penny (besides insurance, gas, & maintenance etc) toward the loan. Sucks, but being free & clear of the man is waaaaay cooler. JMO.

 

[Jonah52]

Put every penny (besides insurance, gas, & maintenance etc) toward the loan. Sucks, but being free & clear of the man is waaaaay cooler. JMO.

Kinda what I was thinking. I'm already ahead of the game since I put down a really nice down payment...I've done tint and used gift cards for all my other mods so nothing crazy. Just have a few more little fixes and mods, then I think I could drive it without touching it awhile (this is usually the problem).... I guess it does sound much better to no have an outstanding loan.

 

[CHOO CHOO]

That also depends on your income. $157 a month is fuggin cheap! I was paying $408 for 5 years.... and that was a $23k loan. It depends on what YOU want. Minor mods are ok. I wouldn't do anything expensive $500 and up. But thats up to you. If you have the money and can pay it off in 2 years, I say do that. Less interest. Do small mods and save a lil to tide yourself over till its paid off.
It all really depends on your debt to income ratio. If you have play money and wanna play, but long term obviously is to pay it off first. Do you have a wife and kids? I know you said college but it is still plausible.

 

[HoS]

Having monthly installment accounts is better than no monthly installment accounts. (credit wise)

Unless you got a horrible rate, I wouldn't pay it off too quickly. I would attack the student debt. As it is most likely at a higher rate.

 

[Jonah52]

That also depends on your income. $157 a month is fuggin cheap! I was paying $408 for 5 years.... and that was a $23k loan. It depends on what YOU want. Minor mods are ok. I wouldn't do anything expensive $500 and up. But thats up to you. If you have the money and can pay it off in 2 years, I say do that. Less interest. Do small mods and save a lil to tide yourself over till its paid off.
It all really depends on your debt to income ratio. If you have play money and wanna play, but long term obviously is to pay it off first. Do you have a wife and kids? I know you said college but it is still plausible.

I'm 21, live at home, go to community college (partnership program), and make about $1000-$1200 month depending on how much sunday-time I get in. About 7% of my income goes directly to my 401K and I don't even see it. SO by the time that rolls around Im around $800 a month. I still try to bulk up my savings for just in case, and have enough money to treat the lady. I could always pay more, but that is pretty much money that was meant for savings. I have zero debt besides the denali, so in a pretty good spot! No wife or kids, but i give the wife thing a few years and my answer will be changing... lol

 

[CHOO CHOO]

Good point^ in all honesty, your monthly payment is so low, you could make it $200 and still try and pay the student loan portion as well. You will get the modding itch every now and then, get your fix, and back to the payments. Having that payment is helping your credit score too.

 

[Jonah52]

Having monthly installment accounts is better than no monthly installment accounts. (credit wise)

Unless you got a horrible rate, I wouldn't pay it off too quickly. I would attack the student debt. As it is most likely at a higher rate.

Actually no student loans! and Its around 7%.....what I expected for an 07 with 130k miles.

I do hate payments a lot, I try to just use cash. I found i spend less and manage it better when I see it leaving my hands....I just won't spend it, but I can swipe a card all day....so I stopped doing that lol

---------- Post added at 10:27 PM ---------- Previous post was at 10:24 PM ----------

Good point^ in all honesty, your monthly payment is so low, you could make it $200 and still try and pay the student loan portion as well. You will get the modding itch every now and then, get your fix, and back to the payments. Having that payment is helping your credit score too.

That's what I was thinking. I tried bulking up my payment on my duramax to twice the normal and it was stressful. I felt like I had to account for every dollar, and it gave me little piece of mind. I think if I went $200 it would cut the time down a good amount, and still allow me to retain my current budget. It really is 25 more a paycheck.

And actually no student loans! My parents were very proactive along with some great scholarships! Im a business major so I'm really analytical of my money, and finance in general, just wanted yalls opinion!

 

[07Burb]

Did not read the whole thing but IMO paid off and no car payment > mods unless something wears out and breaks and you have a chance to upgrade.