Would it be wise to pay off my auto loan when I intend to trade it in, in 1 year?

I dont know if I should go ahead and pay off my auto loan or save the money to put towards the new car that I want and then have the dealer pay off the old auto loan. Any info would be appreciated

Would it be wise to pay off my auto loan when I intend to trade it in, in 1 year?
Actually, when you take out a simple interest auto loan, you pay more principal than interest for the 1st half of the loan. If you only have 1 year left, then even though you will save some money on interest, it won't be as much as you think. You can click on my profile and go to the Auto Evaluator's website and look at the resources page. I have a graph to show you how a simple interest loan is compounded.





If you let me know your current loan information %26lt;your original amount to finance, term, and monthly payment, I can tell you ecaxtly how much you will save. Good luck and you can email me through Yahoo Answers.
Reply:It depends on the interest rate of the loan. If you have 0% or 2.9% or some other low rate, you're better off not paying your loan off early... but if you have 8 or 9% or higher... then if you can afford it, smart money would be to pay it off ASAP.
Reply:Pay off the car and keep it. Driving a car with no car payments is the best way to save money.





When you save enough money go pay cash for your next car.
Reply:Pay towards your loan you have, negative equity is really bad and drives up the % of the loan as well as the monthly payment. Try not to finance through a delaer, get the loan before you go. and also call the bank to get the 30 day pay off. Good luck, new cars depricate so buy from a rental shop or a recently used yet new car.