We paid off my Subaru!

by mzumtaylor on June 20, 2012

Exciting news today: for the first month since November 2007, I am not sending a $111 car loan payment to my credit union! The bill would normally be due today, but I don’t have to pay it. I’m thrilled.

In the beginning of this month, I looked at what we had left to pay on my Subaru ($311.87) and what we had available to pay down debt in June (including Ben’s monthly bonus), and realized that we could make that $312 payment that very first week (which means we still have $100 to put toward our debt paydown goals this month).

So, I scheduled the payment. (God, I love online banking.)

Ben’s response when I texted him from the coffee shop where I was working:

Me: I’m about to pay off the Subaru.

Ben: Nice! I’m just about to leave the house, I’ll let you know if it goes up in flames as I drive away 😉

Having scheduled the payment, I then immediately pulled up my budget spreadsheet and determined the best place to reallocate those funds.

This is our new budget, with the $111 from the car payment reallocated.

I ended up putting $55 into Savings each month, and rolling the remaining $50 into the pool to pay down debt (or in this case, build up our emergency fund before I go back to school). It’s not quite the Snowball method, but I feel happier having something going into general (non-Emergency Fund) savings.

The best bit? We got our title from the credit union in the mail last night. It’s really official; we own my car.

Now, I just have to decide if we want to keep the insurance on my car the same, or change the coverage because we aren’t required by the lender to have a certain level of coverage. Changing the coverage could potentially save us more money, but our insurance costs are pretty reasonable at the moment, so I don’t know. I think a call to our agent is in order.

{ 4 comments… read them below or add one }

image Daisy @ Add Vodka June 25, 2012 at 7:44 pm

Congrats on paying off your car! I’m very excited for the day that I get to do the same. It’s still a long way away, though.


image mzumtaylor June 26, 2012 at 8:48 am

Thanks, Daisy. I didn’t think we’d ever get there myself. I mean, it’s been almost five years. But we did, so I know you can, too. Just keep on it. image


image shanendoah@the dog ate my wallet June 26, 2012 at 11:19 am

Congratulations not only on paying off the car but on having a plan as to what to do with that money in the future.


image mzumtaylor June 26, 2012 at 11:51 am

Thanks! I’ve been thinking about how we would use the “extra” money after we paid off my car since the amount due was less than $1,000. I’m just excited that I finally get to implement those plans!


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