Kenneth Ou

14 Aug 2020

∙

Is it better to pay back car loan or invest the money? (if i now have the sum to fully payback)?

I have $30K remaining on car loan with 3.5 out of 7 years left at $790per month of instalments. if i have the $30K cash, would it be better to pay back the car loan and use the $790 cash to invest or invest the $30K cash

1

Discussion (1)

What are your thoughts?

Learn how to style your text

Lee John

14 Aug 2020

If you have no short term immediate need for the money ($30k) and your investment returns cannot beat the interest on your loan, then best to pay it off earlier, assuming there's no early repayment fee.

If the interest is low, or have hefty early repayment fee, then it'll be better to invest them.

Reply

Save

Write your thoughts

Related Posts

What would be a better choice? Using lump sum of money to pay off one significant chunk of debt, or invest that money.?

We used CPF to pay HDB. But after we fully paid using CPF after 25 years loan, we sell the house to buy another, why are we still paying the interest in the loan when the CPF money should belong to us? What do you guys think?

My father has used up his OA to pay for housing, but has a sum of money left in his SA. What can he do with this sum of money? Can they be invested?

Currently I'm paying for my flat with a HDB loan and if I have spare cash, would it be better to reduce the loan amount/duration or pay back my CPF used for the flat?

i am currently on a 20K commercial car loan about 5% monthly payment $720, 15K reno loan about 5% monthly payment $540. if I have about 100K, should I pay it off or should I invest it to get more than 5% interest? If you were me, What would you do?

Related Posts

What would be a better choice? Using lump sum of money to pay off one significant chunk of debt, or invest that money.?

We used CPF to pay HDB. But after we fully paid using CPF after 25 years loan, we sell the house to buy another, why are we still paying the interest in the loan when the CPF money should belong to us? What do you guys think?

My father has used up his OA to pay for housing, but has a sum of money left in his SA. What can he do with this sum of money? Can they be invested?

Currently I'm paying for my flat with a HDB loan and if I have spare cash, would it be better to reduce the loan amount/duration or pay back my CPF used for the flat?

i am currently on a 20K commercial car loan about 5% monthly payment $720, 15K reno loan about 5% monthly payment $540. if I have about 100K, should I pay it off or should I invest it to get more than 5% interest? If you were me, What would you do?