Look at it this way: interest rates on savings are really, really low at this time. Let's assume that you are paying 8% interest on the financing. No risk free investment currently available is going to pay 8% interest, so paying off your car loan is like getting an 8% return on your money.

The only time I have taken out a car loan was when the dealer offered 0% financing.

 

If only 0.9% of the population is as smart as you then we wouldn't be where we are today. I too would only take out a loan if it's 0%, otherwise, I save and wait until I can afford the car. I understanding it's hard for people to save and sometime it's necessary to buy. But if you have an opportunity to pay off a loan. DO IT. The more loan you take the more fund you're putting into the bank manager that's driving a Porsche and giving you the dirty look when you pull up in your Fit

 

I totally agree. get the history of payments then whamo...pay it off. plus, when you get your rims and other chit, it doesnt hurt so much because you've got the cash baby!

 

I'd recommend paying off the car; having no debt is a good thing, and afterwards you'll have plenty of opportunities to mod it.

 

How about you pay off your car and save. After you pay off your car reward yourself and get some mods but continue to save more than you mod

 

Already paid off, & now trying to save up for the mods, ( even though it's gonna be a buttload for me.)

 

As a former Sr VP in Charge of Lending at a large bank...Pay the sucker off. Your interest is not deductible. You will never get as much interest in savings as you pay on the car loan. Pay it off, and either save or use what would have been the payments for your modding. (Also, once it's paid off, the repo people can never take it from you if you loose your job)