Buy new watch or pay down car loan?

[jms_w]

So I have 16 months of accelerated payments left on my car at 4% over 5 years. Been paying for almost 2 years. Should I buy a new PAM that I love at 25% discount or pay down 6 months on the car? I could just pay off the loan with cash since my money market is not earning anywhere close to 4%. Thoughts? Flame suit on. 

[dddrees]

There is no greater feeling than being debt free.

[xjeeunitx]

Originally Posted by dddrees

There is no greater feeling than being debt free.

[rolex01]

Indulge in a watch that you love. Wear it and feel good about it.
You will still need to pay for your installment isn't.
A watch is an asset a car no matter what is still a liability.

[shgems]

I never think it is a good idea to buy luxury items with borrowed money and the idea that the watch is an investment, well better think about that one. My thoughts would be pay the car off and buy the watch later with the money you saved on interest.

[The Joker]

There is no greater feeling than straping on a new watch.

You only live once.

[seand442]

While I do agree that being debt free is a very good thing, as was stated above, you only get one turn on this earth so have fun and live a little. If you want to splurge and buy the watch, do it. As long as it wont create any other financial issues, enjoy life.

[dysondiver]

i couldnt be happy looking at a watch and knowing i was in debt because of it , either directly or indirectly.

[nauticajoe]

Tough question. Only you can make that decision. What's more important to you?

Good luck!

[xxthe_remedyxx]

Pay down that car note, it'll make purchasing the watch in the future feel that much better.

[sprtrlx]

as long as you have the cash flow to continue accelerating your car payments why not have some fun and buy the watch.as a previous poster pointed out life is not a dress rehersal.but you are you and not me,so decide on what gives you the less stress.

[dennislee]

How about buying a used watch and pay down part of the loan?

[kxux]

While my initial reaction would be to pay down the car first you only can make the call. What do you want more? Be debt free or little splurge on new piece to your collection. I sense some need to confirm your partial decision to buy the watch.

I would buy the watch only if I had confidence that it does not put undue financial stress on your family.

[Rex Kwon Do]

- Pay off the loan.
- Put the monthly payments from the loan into a 'watch fund'
- Buy a debt free watch a few months from now.
- Enjoy!

[GradyPhilpott]

I have to agree with paying off the car note.

Once you've done that, use the discretionary income to buy the watch of your choice.

I think you'll feel much better about the whole thing.

In high inflationary times, the opposite advice might be the better, but that is not the case now.

[jms_w]

Thank You, everyone, for your advice. I knew I could get sound advice here as many here are financially sound. I think I'll pay off the loan AND buy the watch to keep everyone happy. Lol. I calculated that I'll save $1K which is 6% of the principle. Too bad I didn't think about this sooner. I could've paid it off last year and saved another grand. Oh well, live and learn. 

[tkerrmd]

Originally Posted by shgems

I never think it is a good idea to buy luxury items with borrowed money and the idea that the watch is an investment, well better think about that one. My thoughts would be pay the car off and buy the watch later with the money you saved on interest.

[Shade]

Pay down the car loan, whatever the reasons, being debt free is a priority.

[HyperM3]

Being debt free is overrated. I consider myself "debt wealthy" lol. I have everything I want and own none of it. If I died tomorrow I could say I enjoyed life. Get the watch.

[F&Iguy]

glad your going debt free! car loans are not the best use of money pay it off soon

[GothamG8or]

Good choice! By paying off the loan, you just effectively earned 4% on your money since money market rates are basically zero.

[signcarver]

Originally Posted by dddrees

There is no greater feeling than being debt free.

[Lion]

I am currently debt free and it feels good.....pay off the car first then think about watches/toys!!!

[FeelingTheBlues]

It's up to you but I'd rather pay the car first.

[TuonoRider]

Originally Posted by HyperM3

Being debt free is overrated. I consider myself "debt wealthy" lol. I have everything I want and own none of it. If I died tomorrow I could say I enjoyed life. Get the watch.

Simply, "Wow."



I say debt free is the way to go - pay off that car and save up for the watch and pay cash. Buying everything on credit and owning nothing is so overrated; think of how much more you will appreciate something that you had to set as a goal and work towards. And when your turn comes around to be layed off or unemployed for some reason or another (God forbid!!!), that safety net of 6 months cash will go much further and help you sleep at night knowing your credit rating is not being utterly destroyed because you can't keep up the payments on the lifestyle.

Instant gratification is fun, but doesn't pay off in the long run. Just my simple-ton opinion.

[GothamG8or]

Originally Posted by TuonoRider

Simply, "Wow."



I say debt free is the way to go - pay off that car and save up for the watch and pay cash. Buying everything on credit and owning nothing is so overrated; think of how much more you will appreciate something that you had to set as a goal and work towards. And when your turn comes around to be layed off or unemployed for some reason or another (God forbid!!!), that safety net of 6 months cash will go much further and help you sleep at night knowing your credit rating is not being utterly destroyed because you can't keep up the payments on the lifestyle.

Instant gratification is fun, but doesn't pay off in the long run. Just my simple-ton opinion.

cosign!

[HyperM3]

Originally Posted by TuonoRider

that safety net of 6 months cash will go much further and help you sleep at night knowing your credit rating is not being utterly destroyed because you can't keep up the payments on the lifestyle.

Instant gratification is fun, but doesn't pay off in the long run. Just my simple-ton opinion.

I have a small safety net but I dont like using it for purchases. Secondly, this is why I buy finer watches(like Rolex) I could go liquid in an instant if I had to.

[FNFZ4]

1.) There is nothing better than living debt free...
2.) Things happen... do you have 1 year cost of living saved up? (safety Net)
3.) There is a reason why they are called Luxury

Every situation is different and every person's priority is different. In an economy like this, no one has job security. Yes we only live once but lets be responsible about it. I always think of the best and prepare for the worst. Before the rule of thumb was to have 6 months living expense safety net. now that does not apply anymore. some people are out of work for 2 years, so i increased my net to 1 year.

I would pay off the car. if $h! happens at least you have a car to use to hunt for a job. once you are debt free, you can buy all the watches that you want.

again, this advise is only dependent on your financial status. only you know that.

[liuk3]

No brainer. Glad you came to your senses. Definitely payoff your car loan before buying luxury goods like expensive watches.

[gwalker]

If you can afford it and it doesn't affect your life get the watch. Yea debt free is great but there is nothing wrong with having debt either. I'm only 27 and would much rather have my RV and Boat payments than not have them. Sure I could save 10 years but if the payments still let me save and live my normal life as I would without them why not. Yea I could be 50 before I got my boat but my father hates going offshore even if the weather is a little bad. I'll take it while I'm young and can use it. Just my $.02