I am thrilled to report that our car loan is officially paid off. We took out the loan in the middle of March, so we’ve paid it off in less than two months!
How did we do it? The most important thing we did was buy a car that we could easily afford. We also negotiated a great price. And, we saved up for the purchase. All of this meant that the loan wasn’t a very big loan. And it helped to have good credit, so that we could get a loan with a great rate.
As for paying off the loan itself, we basically snowflaked all available funds toward the loan. The funds included the amount we had been saving monthly for the car purchase, the amount that I normally would have transferred into our savings account, our tax refund, our tax rebate, and some additional small amounts of income that trickled in during the last two months.
Considering we took 4 1/2 years to pay off our last car loan, I’m extremely pleased that we were pretty much able to meet my 2008 financial goal of paying cash for a new car.
What’s our next financial goal? Stay tuned . . . I’ll share that with you soon.