Same as I have paid cash for some of my cars. The only reason I would carry a car note is if my money is getting a higher interest rate dividend than what the car dealership is charging me on the car loan. I would also advise anyone carry a car note to pay down extra on each payment. Here is some more advice.
A person who owes on multiple loans or credit cards should focus on paying off the smallest of loans first. You have to still continue pay off all of your monthly bills Once the lowest bill is paid off then focus on the debt that is second in line to the one you just paid Now take that extra money you were using to pay of the first debt and apply that payment to the second least debt. It will shock people how must more you will have to pay off that next remaining debt.
Once you start working your way up your list and start to cross off the lower debts and start to apply all that capital from the previous loans to the next loan you are trying to pay off you will see the amount you have to combine toward your next debt. All that capital will snowball by the time you get to the big boys, automobiles and your home mortgage.
For God sakes don't look at that extra money as some thing to go buy other things with. You have stay focused and disciplined.
I have heard dozens of people that have called into the Dave Ramsey show talking about what a relief it is to finally be out of debt on everything by following this simple debt payment formula I have just given everyone here on this forum.
By the way Seth, congratulations on you money management wisdom.
One more point for those who want to pay cash on a new or used car at a dealership. DONT TELL THEM YOU ARE GOING TO PAY CASH. Let them sit down with you and think you are going to finance that car through one of their banks. This way they will think about all the interest they are going to make off of you on the loan and give you an even better price on the vehicles. One it's all laid out before you then ask them if this is the bottom price out the door no other fees. When they confirm it then you hit them with a big surprise by paying cash. Watch the look on their face.
One other option if for people to go with the loan but make sure their are no penalties for paying off the loan early. If they say yes there are no penalties, then take out the loans and then PAY IT ALL OFF two or three weeks after you drive the car off the dealership lot. By doing this you won't have to deal with the dealership trying say they just realized they didn't included expenses that have to be added to the total amount. I have had to happen once and I just got up and walked out of the dealership. I didn't leave the lot however because the manager came out to us and wanted to know what happened. After explaining it to him, he apologized and said he would honor the original deal.
They want your business, they want to service your vehicle after you buy it as that is where they get most of their money from in a dealership.
