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Paid Off My Car!!!

October 4, 2010 by Lulu in Finances, Save Money with 13 Comments


I have been keeping a little secret from my readers and I am now ready to reveal it. I paid off my car IN FULL so I now own it. Woooooo hoooo!!!!! I no longer have a car payment that I will be sending to the bank but I have decided to keep the amount in my budget and place it in my Car Fund. (No that is NOT my car in the image below….it is my dream car though.)

I created a sub account in ING (Oh how I love ING) and set up an automatic ‘car payment’ which moves the monthly payment from my checking account to a savings account every month. This money is going to be used to pay for those miscellaneous car items like inspections that are not taken care of on a monthly basis.

 Paid Off My Car!!!

image from lexusenthusiast.com

I am also using that to grow a savings goal towards the purchase of a new (actually used, but new to me) vehicle in the future. This is part of the snowflake strategy of continuing to budget for the same amount but using it for savings instead of debt since I am CAR debt free.

Another thing that relates to me paying off the car is that I can now lower my insurance premiums because I do not have to keep the insane amount of coverage that you need when you have a loan. I will be increasing my deductible since I have $1000 in my car fund that I can use in case I need it so this will lead to lower monthly payments on the insurance for me.


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13 Comments

  1. Laptop BriefcaseOctober 4, 2010 at 4:53 pmReply

    Congrats LuLu. That is quite a good feeling when something big like a car is paid off. It’s like suddenly getting a raise. I am getting close to paying mine off too.

    • LuLuGalOctober 5, 2010 at 4:55 pmReplyAuthor

      Well good luck to you too!!!! I am now taking the amount I used to pay to the bank and set up (yet another) ING sub account. This money is now going towards saving up for my next car. Woo hoo!!!!

  2. NCNOctober 6, 2010 at 10:44 amReply

    Congratulations! Doesn’t it feel great?!? I am a big fan of “making a payment to myself”, rather than “making a payment to others”… It’s always awesome to hear from folks who have paid off debt. Rock on!
    -NCN

    • LuLuGalOctober 7, 2010 at 9:22 pmReplyAuthor

      Yes it feels really great to see that I can have that amount as a transfer in my ING account and make my savings grow!!!!

  3. seo services companyOctober 6, 2010 at 1:50 pmReply

    Congratulation Dude, Enjoy with your car…

    thanks for sharing your personal info with your readers..

    Keep Cheers..

    Jacob

  4. Diva In DebtOctober 7, 2010 at 6:52 pmReply

    Congratulations right back at you! I’m planning on having my car paid off in November myself! Small victories add up!

  5. Renting TextbooksOctober 8, 2010 at 6:09 pmReply

    ING eh? I’ll have to check it out. I need to sell my car.

  6. leslieOctober 9, 2010 at 10:28 pmReply

    Congratulations!!

  7. tiresOctober 13, 2010 at 2:37 pmReply

    Congrats on paying off the car, and awesome to see what you are doing with that particular budgeted money!

    Till then,

    Jean

  8. JasmineOctober 15, 2010 at 3:59 amReply

    That is really good news! Why don’t you show a picture of your car… the car that you own now!

  9. Printable CouponsOctober 17, 2010 at 9:09 amReply

    Awesome stuff! My husband and I just paid off our minivan. Unfortunately, we had a high interest rate loan on it so it didn’t make sense to keep the loan when we came into some extra cash through a bonus. However, sometimes it does make sense to keep the loan, especially if you get one of those 0% loans for 5 years.

  10. Monthly Financial Update: December 2010 | How I Save Money.netJanuary 10, 2011 at 4:44 amReply

    [...] I must say that I was proud to eliminate ALL of my debt in 2010 by paying off all personal loans, paying off my car AND paying off my credit cards. I started the year off DEBT FREE and revamped my budget so I am [...]

  11. The Universe Wants Me To Get A New Car | How I Save Money.netApril 11, 2012 at 5:59 pmReply

    [...] Feed (RSS or Email) The Universe Wants Me To Get A New CarPosted by LuLuGal | January 17, 2011 . I recently paid off my car in full and it seems like the universe is pushing me to get a new car. I have had my eye on a Lexus RX350 [...]

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