I’m considering paying off the remaining $10k balance on my 2022 Elantra SEL. I love how the car drives and its aesthetics, and I’m wondering if it would be a smart move if the car won’t give me headaches over the next ~10 years.
Back in 2021, I paid around $24k out the door at 7% interest for 72 months, with $5k down. After 31 payments, I owe about $10k. Paying it off would save me around $70 a month in interest. I’m not rich, but losing the $10k wouldn’t hurt too much since I have a good emergency fund and live below my means.
The car has only 16,000 miles, but I’ve noticed a lot of tiny paint chips. I wouldn’t want to pay it off and then have to deal with major repairs or significant paint damage in a couple of years.
Would you bet on this make and model to be reliable in the long term, or would I be better off trading it in for something more reliable, like a Honda or Toyota, even if it means adding a few thousand to my debt balance for a used car in the same price range?
TLDR: It feels good being close to being debt-free, but I’m also hesitant to fully commit to this car despite loving it. Should I pay it off, or upgrade to something more reliable? I’d appreciate any insight.