With the low interest rates now, should I pay off my car loan (2.28% pa, 60k outstanding, 5 years left)? Any other alternative to save this funds?

Hi there,

You could try and find options to refinance your car loan today. That way you are paying more of your principle vs interest.

As your car is a depreciating asset, not unless you are sure that you are going to hold on to your car to the end of the 5 year term, you should not pay up your full amount today, as you will lose liquidity and subject yourself to early prepayment fees.

As you are not able to possess your car more than 10 years, it is considered more of an expense rather than asset.

I do hope i was able to shed some light!