Should I pay off my loan?

[ZoeHillo]

Hi everyone! I just placed an order for a 2022 Porsche 911 C2 and I wanted to ask if I should pay off my existing loan for my current truck 2021 Ram 1500 Limited which we will be selling once we take delivery of my 911 in May of this year. I didn’t lease the truck because it didn’t lease well so it was financed for 60 months. I also want to pay it off so I can get some room for financing my 911 and get a competitive interest rate.

My loan balance on the truck is around 48k and my monthly interest is 3.5% so around $150 per month. I currently have the cash to pay off the loan so I can save some interest for the next 5 months that I am keeping this truck. My question is, do I pay sales tax or any other fees when I pay off my loan? If the sales tax is more than what I would be saving for interest, I would prefer not to pay it off and keep the truck until I pick up my 911 and do a third-party sale through Vroom or Carvana since they will be paying sales taxes and not me.

[Kleeeniks]

I think you sould.

[JoeIskor]

It would be best to ask the bank or company where you got the loan from, but as far as I know, yes, you have to pay the loan for the truck. I was in the same dilemma with my mortgage. When it came time to buy a new home, I had to pay off the mortgage from Mortgage Broker York (https://yorkmoneyman.com) for my current home and then buy a new house. And I think that's precisely the case with the loan. But what is related to leasing? I don't think there is a big difference between leasing and financing. When it comes to buying a car, I also choose to finance because it seems much more convenient and safer. And yes, the sales tax is already paid. So pay off the loan as soon as possible, and then you will be able to get your new Porsche quickly.