Automobiles, Noted

No More Car Payments

It’s time to celebrate!  PT from Prime Time Money paid off his car loan!

Now, PT wants to know – What To Do When You Pay Off The Car?

Let me agree with PT when he writes:

Take Time to Celebrate – First, give yourself a good pat on the back for knocking out this debt. Consider a celebratory car wash and a photo op next to your car with the title in your hand.

Awesome!  PT is right!  Paying off your automobile loan – and actually owning you car – feels awesome.  (You can click here to read about the day we paid off our automobile loan – and how, just two-and-a-half years later, we purchased a new-to-us minivan, with cash.)

I love how PT is thinking.  Paying off debt is one thing, but staying out of debt is the ultimate goal.

Here are a few of my suggestions for what to do after you’ve paid off your car loan:

1.  Spend a little extra on car maintenance.

2.  Continue to make car payments – but make them to yourself!

3.  Call your insurance company and see if your rates might be lower, now that you own the car.

4.  Every time you get newer car fever – remind yourself how awesome a payment of zero feels!

I hope you’ll zip over to PT Money, congratulate PT, and tell him NCN sent you!  Debt Reduction Rocks!

7 thoughts on “No More Car Payments

  1. I love #4! It sort of falls in line with what I tell myself when I get the “newer car fever” – MY car is my very favorite color – PAID OFF! 🙂

  2. Fantastic for PT! I definitely agree with continuing to pay yourself the car payments, but if there is other debt I would either roll that right the next snowball payment or even consider splitting it 50/50. 50% goes towards the next car and 50% goes to the next debt. How about funding that 3-6 month emergency fund?

    Great post, it’s good to see others’ successes to keep us all inspired.

  3. I just paid off my new truck last month (well, it’s a 2006, but I bought it new). Anyway, this is the first time in umpteen years that I have not had a carpayment (or two), and it feels AWESOME.

    Now I have 457 dollars a month to put towards paying off my mortgage or student loans. Woohoo.

    Way to go PT!

  4. Thanks, NCN. I appreciate the shout out. I’m so glad to be rid of that debt. Just one more step completed in our plan to live the best financial life that we can. With that debt out of the way, other priorities and now take over, like more savings, etc. I like your idea of continuing to make the payment, but to ourselves.

  5. Yay! I am hoping to have my car paid off before the original loan end date. It will truly be a great feeling. Keep that payment as a savings plan like NCN says!

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