Alaska or paying off a car loan?

[Churchladychurchlady]

Interesting predicament...
I recently came into some "found money", so I understand where you're coming from - you're looking for validation that you're not making a bad move to do something you'd otherwise never have the chance to do, right? I think a number of pps have some good points to consider, so let me tell you my story and see if that helps.

I've known my hubby since we were in 4th grade, fell in love with him in 5th... we grew up in the same blue collar town, parents have basically the same values etc... which they've passed onto both of us.
We were married straight out of college, did everything "right". Got married, had jobs, saved up, bought a house, had a kid, lived very modestly - but comfortably, and built our lives together. (I know this sounds like the lead up to something big, it's not, trust me)
Vacations, when we did take them (about once every 4 or 5 years) were low key. We drove, we camped, a splurge for us was staying in a hotel - and even then we didn't do that until we were in our 30s. Our biggest vacations to date were to rent a cabin for a week in Tennessee and go to Dollywood, the other was 5 days at WDW. Vacations are always an "oh, I'd love to, but, no, too expensive".

Well, since I came into this "found money", we decided to do the trip of a lifetime. My DD is turning 18 this spring, graduating from High school, we celebrated 25 years of matrimony together a year ago, my hubby just turned 50, I turn 50 next year - in other words, it's a big couple years for us. So - while yes, we could easily follow our usual route and do the prudent thing and invest all of it, we decided to split out some of it and do this trip. Why? because it's a big couple of years, we don't do this stuff EVER, my DD will soon be leaving the nest and frankly we just needed to mark this season in our lives with something unforgettable. Do I still feel that twinge of guilt over "wasting" money on a frivolous vacation - heck yes! But for me, we have a good enough reason to do something out of the ordinary and for once, be wild and crazy. (Up till now, the craziest thing I've ever done is to fly to Milwaukee with some friends to attend a dear friend's funeral)

I feel like this is something I can do, and will look back and be able to say - for once I did something out of the ordinary, that I'll never forget and will not regret. If you feel this way too, I'd say "go for it". But in the end, whether we validate your decision or not, you're the one you have to look at in the mirror.

 

[mevelandry]

Why would you want to continue to make payments when you can have it paid in full???

This.

It makes no sense to go on with payments and pay interests when you can pay a loan in full.

 

[Lunarias]

FWIW, our family of 4 was able to do Alaska, with excursions for about 5k (in 2 rooms) mind you I was not blessed with some extra cash, so I really looked for deals, I priced out cruises with airfare, to find which was overall the cheapest (also Glacier Bay is phenomenal, Tracy arm is nothing compared) we also technically booked an "inside room" during a sale that allowed us to upgrade in that category for free. So we had a room with doors that opened to the outside, but had lifeboats in front of them. But we spent hours up on deck, watching the scenery, playing cards sitting in the hot tub. We also did all independent excursions which saved us a lot too. In the end we still spent as much on excursions as the cruise cost, but it was unforgettable

 

[DLgal]

Car rate 2.75%. We live in GA so yes the trip would be very expensive with airfare, cruise, excursions etc. It would be over 20K for our family of four staying in a ocean view room. Princess actually is a little more after figuring in the 10% discount, Disney OBC, and using our Disney Visa Rewards toward the cruise/excursions etc. We can go on a 7 night thanksgiving cruise out of port Canaveral for 10k in a veranda thanksgiving week and do nice excursions but been there done that before.

$10k for a 7 day Caribbean cruise seems reasonable to you? Wow. We are a family of four and I wouldn't pay more than $7000 for that in a verandah on DCL.

I can't believe Princess Alaska cruise would still be $20k. That seems ridiculous to me. I priced out a Princess Alaska cruise last summer for our family of four and the per person was $1299. Are you booking two rooms or something? Find a cruise that leaves from Seattle or San Francisco and then airfare won't be that bad.

 

[Jess_S]

Great question...if this were only a financial decision, it'd be a no brainer...but let me share this:
When my niece died from Leukemia after a 3 year battle, our family agreed that "experiences" were so very important....family vacations can have a value...
that said, only you know what makes the most sense for your situation

This is my life view as well. When my sister and her husband got married, they decided to be responsible and use their wedding money to pay off their student loans instead of taking a honeymoon. They planned to take the honeymoon a few years down the line after my brother in law finished his service in the army. Instead, my sister died in a car accident a few months after their wedding and never got her dream trip to Italy. Ever since, I have prioritized my travel budget. If your financial situation is such that the car loan isn't a hardship and DCL Alaska is a dream trip for you (such that another line wouldn't do), I would go for the cruise.

 

[Jennifer777]

If you are paying interest on loans or cars at all, pay that off and change the way you manage your money (no more financing) so when you do go to Alaska, it doesn't have to be a once in a lifetime trip. I'm not saying you necessarily fit into the following generalization, I don't know your financial situation, but if most Americans add up all the interest they've paid to banks from car loans, credit cards and other personal loans over the last 5 years, they'd probably find they could have taken a very nice vacation with the amount of interest they paid. If I was you, I would consider that money an opportunity to free yourself from debt so you can quit working to pay the banks. Then start saving and pay cash for the things you want. Also, you can do Alaska for a whole lot less than $20K!

 

[Rambler5678]

Thanksgiving week is a premium week. Any other time its $2,000 less. The $10k is a grand trip total. We used to take our girls out of school but the local school has reduced the days they can miss and as they got older their missing a lot of tests work etc. 20k is everything cruise, air, excursions, spending money etc. We went last year in October and it was way to hot/humid for us. We live in the south were that's a part of life but we want a break from that kind of weather on vacation. After reading the reviews from everyone. I think paying off the car and taking a cruise out of Port Canaveral is the way to go. Thanks for every ones input.

 

[Partyof4LA]

I agree with others who say pay off the car. Put the exact amount you were paying each month for the car into a savings account and use that to pay for a nice Alaskan trip once you have enough saved.
I love to travel and love disney, but would never choose a trip over clearing out a debt.

 

[Anchors Away 2016]

Well, since I came into this "found money", we decided to do the trip of a lifetime.

You should do what is best for your situation, of course, but personally, i agree with Churchlady.

The interest on the balance of your car loan, at 3% or whatever you said you are paying, is not that much. You were going to be able to make your car payments anyway when you bought the car. Chances are, unless things have changed, you still will be able to.

But it isn't every day the opportunity comes up to take a special trip. As others have said, days and memories are precious.

We came into some unexpected "found" money. We thought of many practical things we could do with the money, but then we said, "Let's take the opportunity to use it for a family vacation." There were 9 of us. My wife and two sons, my sister and her husband and two daughters, and our Mother. We considered a lot of vacation options, but finally settled on a cruise. Now, the money would have been enough for a week-long Caribbean cruise for all nine of us, including airfare, excursions, etc., even at high season, if we went on some other cruise line. But again, we said, "It's a once in a lifetime money, let's take a once in lifetime trip." So we went with Disney cruise line. It meant that instead of having the trip be "free" we all had to spend about what we each would have on a "normal" vacation, but we weren't getting a normal vacation, we were getting a special one.

And for us, it was definitely the right choice. Our financial situation is the same as before and really wouldn't have been that much different if we used the money to pay down debts, but we have memories and time together that will last forever. My mother is 70. My sons are 14 and 15. THESE are the days that will never come again. I'm so glad we made the best use of them.

But again, to each their own.

One last thing, I really don't think you would have asked that question unless you (or your spouse) already had their heart set on that cruise.

 

[Ofinn]

$10k for a 7 day Caribbean cruise seems reasonable to you? Wow. We are a family of four and I wouldn't pay more than $7000 for that in a verandah on DCL.

I can't believe Princess Alaska cruise would still be $20k. That seems ridiculous to me. I priced out a Princess Alaska cruise last summer for our family of four and the per person was $1299. Are you booking two rooms or something? Find a cruise that leaves from Seattle or San Francisco and then airfare won't be that bad.

The most Ive paid to cruise on the Fantasy in the offseason was 4300 for the 4 of us. What some people are willing to pay boggles my mind. 10k no way. I could buy a halfway decent used car for the price of cruising to Alaska on DCL.
I would cruise on a different line and put the rest towards my car. We are fortunate to both have good paying jobs. I dont need to inherit money to cruise on DCL, but Im not going to overpay for something. I love DCL, but there are certain cruises I think are so overpriced I could win the lottery, and I still wouldnt do it out of principle.

 

[CampbellzSoup]

priorities...priorities...

Whatever floats your (excessively expensive) boat!

 

[Minniesgal]

I'd always clear any debt I was carrying before being frivolous with money.

Save the car loan payments you lose towards a later trip to alaska

 

[DLgal]

The most Ive paid to cruise on the Fantasy in the offseason was 4300 for the 4 of us. What some people are willing to pay boggles my mind. 10k no way. I could buy a halfway decent used car for the price of cruising to Alaska on DCL.
I would cruise on a different line and put the rest towards my car. We are fortunate to both have good paying jobs. I dont need to inherit money to cruise on DCL, but Im not going to overpay for something. I love DCL, but there are certain cruises I think are so overpriced I could win the lottery, and I still wouldnt do it out of pricipal.

I would love to pay $4300 but we can't sail in the off-season at the moment, unfortunately. I draw the line at $1000 per day for any vacation for our whole family.

 

[Allison]

I agree with paying off the car and putting the payments towards ss

 

[saxmangeoff]

Car rate 2.75%.

Would you take out a loan at 2.75% in order to take the cruise?

If yes, then go for it, and understand you are "paying off" the cruise in the form of the car loan.

If not, pay off the car and start saving for the cruise.

My $0.02.

 

[Ofinn]

I really don't see the probem with going on a cruise if you have a car loan. I have one at 0%. I've also inherited money. It went into an IRA. I work extra to pay for cruises. My concern would be spending 20k on a cruise. It just seems excessive to me.

 

[wonderlandwego]

Thanksgiving week is a premium week. Any other time its $2,000 less. The $10k is a grand trip total. We used to take our girls out of school but the local school has reduced the days they can miss and as they got older their missing a lot of tests work etc. 20k is everything cruise, air, excursions, spending money etc. We went last year in October and it was way to hot/humid for us. We live in the south were that's a part of life but we want a break from that kind of weather on vacation. After reading the reviews from everyone. I think paying off the car and taking a cruise out of Port Canaveral is the way to go. Thanks for every ones input.

Your interest rate is low. Go to Alaska. Check other lines besides DCL, if it's once in a lifetime then Glacier Bay should be included. Take a helicopter ride and go dog sledding on a glacier. If you can comfortably afford all of your bills now, and have healthy savings accounts/college funds, then don't think twice about it! Life only happens once.

 

[mousehockey37]

I would go for paying off the car loan. I understand making memories because anything can happen at anytime as well, but hey, with the car loan gone, that frees up X amount every month that could quickly snowball into a better "lifetimer" trip.

 

[Wish I lived in Fl]

Pay off the car loan and put car payment into cruise savings account. No matter how much is spent on a vacation, a perfect vacation is not guaranteed. What if the trip of a lifetime contains Noro? Four $5,000 vacations or two $10,000 vacations would almost certainly generate more happy memories than one $20,000 vacation for our family.
Best of luck and do take some vacations.

 

[RedSox68]

I think for the OP, the bottom line is this: if you feel that this is the right time to go and maybe the only time to go and you don't want to risk waiting for a future opportunity, then go. If you feel you are okay with waiting a year or two, then pay off the car loan. Many good points were made by PPs that the interest you are paying is not going to amount to much if you don't pay off the loan. In the end, you have to make the decision that you are most comfortable with and will not regret in the future.

[also look at Holland America's prices for Alaska -- we got a great deal with them]