I start a new job late May with an 80k salary. I have the idea of paying off my parents’ Honda as a surprise since they helped me pay for college. I checked their account on the financial site and it’s $6,466 right now with $51.57 in interest and they have 18 more payments to make. They pay $388 each month and since December is in 8 months, there will only be around $3,400 left. I have two concerns:
I’m willing to save money to pull this off, but I’m not sure how to go about doing this.
Can I go to the dealership and hand them cash? Can I just add my bank account through the site and pay it off?
I have a minimal understanding of loans, so I worry about this hurting them instead of helping.
How will this affect my tax filing and theirs since this is a gift? Does paying the loan off early affect their credit?
Ideally, I’d like to wrap a paid receipt for them to open on Christmas Day, but I’d understand if logistically this isn’t possible.
Submitted April 18, 2021 at 12:07AM by gibblesNgobbles https://ift.tt/3x5dbV5
