[quote=Hobie]Car is a depreciating asset. And when financed you are required to carry Collision insurance. Also, monthly payment is less on car so extra payments will go to principal and have a larger effect on total of all payments P+I. So, short of running numbers, my gut says; pay off car first, save insurance, then bank rest for rainy days.[/quote]
Hobie is right.
Car is a depreciating asset, it’s depreciating at a 5- 10 year rate so add 10-20 percent to it’s rate. House is depreciating at 25 year rate, so add 4% to house rate.
So figure the car is costing somewhere between 14-25% in true cost.
while house is running at 7 percent.
