Your a bit late to refinance the car. Rates are a lot higher now then this time last year. You could have easily had under 5% a year ago. If you have some equity in your home then a home equity is the way to go. The interest will be tax deductable and you can basically pay anything you want each month. I would however try and pay the car off as soon as possible.

 

[QUOTE=Squeezer,Dec 16 2005, 10:23 PM] Back in July 2000 I got a bank loan for my S2000.

 

a year ago I bought a truck for $2500 because the tires and such on the S2000 were so expensive and I was needing a new set every 6 months. I got the $2500 from the last of my mutual funds that was left over from a fund my parents setup to pay for my college. a year ago I still owed $10k on the S2000. I could sell the S2000, but I don't think anyone would really want it. It had a red interior, but I switched out the door panels and carpet for black, but the seats were red. So I painted over them with vinyl paint and it kind of flakes off and I have to keep touching it up; I'd need to buy black seats which are $1000 on ebay. I do have $1000 in the bank though. But also the S2000 has some door dings and a crack in the paint on the rear bumper behind the passanger tire.

So its not really sell worthy, I don't think anyone would want to buy it since it really needs new seats and having those door dings and crack fixed, and it has 78k miles on it. Plus, I don't want to sell it since I'm only 8 months from having it paid off.

 

Looking at bankrate,a Home Equity Loan for $5k is the minimum the bank that has my home loan will give, and they have the lowest rate too, 6.75%. 5k at 6.75% for 3 years is $150 a month. So, should I take out a loan, pay off the s2k, and then drop the insurance coverage to liability only (to save money), and pay $150 for 3 years instead of 636.42 for 8 months with full coverage insurance? right now my insurance is $200 a month, with liability only it would be less

 

Or maybe even 18 months. I wouldn't be selling the car either.