cars

Early auto loan payoff: Three inspiring stories.

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Aside from a house, a car is probably going to be the most expensive thing most of us ever buy. According to Experian’s 2017 “State of the Automotive Finance Market” report, the average auto loan amount is now $30,621.

Sound like a lot? That’s because it is – and our cars probably cost more than that. The $30,621 figure is the auto loan amount. Imagine how much it might be without trade-in allowances and/or down payments.

Oh, and we’re borrowing for a lot longer. Almost one-third of borrowers (32.1 percent) are choosing terms of 73 to 84 months.

These are the kinds of numbers that make me want to lie down with a cold cloth over my eyes. I learned them while researching “How to finally pay off your car this year,” an article for Magnify Money.

Fortunately, I also know of some consumers who didn’t opt for seven-year loans. Instead, they paid off their vehicles in six to 18 months. They weren’t well-heeled – just determined.

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Check engine light on? Pay attention

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th-1If money is piling up in your checking account, here’s one way to divest yourself of the burden: Ignore both the manufacturer’s suggested maintenance tips and the “check engine” light.

According to CarMD.com, a faulty oxygen sensor is the most common reason for that check-engine light to pop up on the dashboard. The fix could be as simple as changing out a dirty air filter, but you could also be on the hook for a $259.30 (on average) sensor replacement.

Some folks push the envelope on maintenance visits or ignore the manufacturer guidelines entirely. They think that’s frugal, but it isn’t.

The oxygen sensor is a good example. Sure, you’ll save almost $260 by not fixing it. But you’ll pay for it in other ways. Expensive ways.

 

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