Just Paid Off my TDI

[VWRacer1]

In late June of 2002 I took advantage of VW's offer of 24 months of zero percent financing on the remaining MY 2002 cars, and bought a 2002 Golf TDI. I made the last payment just a few weeks ago, which frees up $800/mo to do other things with...

Yippee!

 

[Karmann-diesel]

Sweet! That's a great feeling. People seem to be so hung up with the idea/myth that "you'll always have a car payment". With the service life a well maintained TDI will give you should be able to get many payment-free years out of it.

 

[VWRacer1]

Yep, I am now down to just one $250-ish payment in addition to my house payment. By the time I retire next June I'll be down to just the house payment, and my older car is a 2000 Excursion PSD. Should be good for at least 10 more years with just regular maintenance...

 

[CoffeeGeek]

Woooot! Congrats!

I'm still 2 years and 11 months left on my loan at $502 a month (just paid off a year of it, only 1 month after purchase - gotta love open ended loans).

This is one reason why I went with my credit union instead of the cheap VW loans currently offered. VW would have given me 3.9% (CR rate is 5.8%), but the CR lets me pay any amount, any time to the principle, and the accum. interest automatically adjusts. The only constant is I have to pay $502.96 a month. How many months is up in the air, if I make lump sum principle payments here and there. VW's financing was mighty shady on this part - yes you can pay double, triple payments, but not towards principal - to a principal / interest payment.

My goal is to have the car paid off by summer, 2006. Then maybe a BMW 1 series is in my future, if it has the d model available in Canada

Mark

 

[VWRacer1]

Ouch! That must be a Canada-only thing, Mark. IIRC, in the US, Federal Law requires that any amount paid over the amount due each month be credited to the principal. It certainly works that way in practice.

 

[MaxThrust]

*snip* <font color="green"> which frees up $800/mo to do other things with... </font> *snip*

Wow, that's a pretty steep payment, but getting it paid off in two years is sweet, especially at 0% interest. You also got a good price on the car if my math is correct.

I have my '99.5 Jetta at 4.75% through my CU. I got such a good deal on the car that I took one of our high interest credit cards and rolled the balance into the loan for the car and am now paying that balance too. It is still a sweet deal as I owe about $3k less than the car is worth, even with combining the CC balance.

Our Navigator loan is at 3.75% through the same CU, but I took it out for a longer duration because of a special deal they had (1 full year of interest waved if you qualified...) at the time we did the loan. Unfortunately, the same reasons that are making the Jetta worth more have killed the value of the 'Gator and I won't be rolling any bills into that loan. Our loan is now at the exact value of the 'Gator. I won't be trading that one in for a long while yet. Good thing it has been mechanically just about perfect...I hope it stays that way for at least 4 more years...

Congrats on paying off the VW, it is always a nice feeling having your vehicle paid off. It is an even better feeling having that extra cash in your pocket each month. (Now, which mod should I buy first?)

YMMV

Mike

 

[VWRacer1]

IIRC, the negotiated price was $17,250. I rolled the tax and license fees into the "loan", and the payment was something like $803-and-change. I'm now applying the surplus to the Excursion to ensure I carry no debts, other than a rapidly appreciating house, into retirement.

 

[Powder Hound]

Sound financial plan. Go for it!!!

 

[TheLongshot]

VW would have given me 3.9% (CR rate is 5.8%), but the CR lets me pay any amount, any time to the principle, and the accum. interest automatically adjusts.

I think VW does the same thing. Anyways, after everything shook down from my total of my Saturn, and my tax return, I paid an additional $5000 on my loan.

I had also paid down my loan early with my Saturn as well. I was making double payments early because I still lived at home at the time.

Jason

 

[CoffeeGeek]

VW would have given me 3.9% (CR rate is 5.8%), but the CR lets me pay any amount, any time to the principle, and the accum. interest automatically adjusts.

I think VW does the same thing. Anyways, after everything shook down from my total of my Saturn, and my tax return, I paid an additional $5000 on my loan.

I had also paid down my loan early with my Saturn as well. I was making double payments early because I still lived at home at the time.

When I initially talked to VW, they weren't clear on how payments (re principal vs interest) would be handled. I presented some scenarios, and the answers I got back were confusing at best. I should point out this is the first time I have gotten an auto loan, so it was new territory for me.

I also had another reason for going to my CU. I'm self-employed, and I want to get a mortage in a few years. This builds up cred with the CU (as a self employed individual), esp. if I pay off the loan early, which is my full intention.

Mark

 

[bjmarler]

Congrats on finally totally owning your TDI. My mom was VERY nice and gave the rest of the money I needed so I could pay of the whole thing instantly as soon as I bought the new 2004!!!! Aren't Moms the GREATEST!!!