Completing a car loan is an admirable feat—this is true no matter if you bought a starter sedan like the Changan Alsvin or a tried and tested family SUV like the Nissan Terra.
So, you may be wondering, what's there to do next after fully paying off your car loan? It can be an exciting yet confusing time, and we're here to help you gather a few ideas on what to do best.
Finish off your paperwork
Before you ride off into the sunset with your newly paid-off vehicle, make sure you do these things. First, update your car's registration if you haven't already done so. Next, draft a letter addressed to your bank or financing agency requesting the cancellation of your loan and channel mortgage. On the same note, state your request to release the original official receipt and certificate of registration (OR/CR).
You should then submit the letter to the bank or financing agency together with your original loan contract and chattel mortgage form. Bring two government-issued IDs for the transaction and wait from a day to several days for the release of your OR/CR.
It's not over yet, as you will need to bring the OR/CR to the Registry of Deeds (RD) branch where the bank or agency registered your loan. Once the RD validates the end of your loan, they will issue you a form of cancellation to have the loan unencumbered from your CR. Once done, proceed to your local LTO office to receive a new CR, one without the loan attached to it.
Celebrate paying off your car loan
As you likely know, paying off a car loan isn't an easy task. It takes months and months of patience and sacrifice for many people to drive their dream vehicle.
That's why you should think about celebrating the occasion in a personal way. Take some friends and loved ones on a road trip aboard your paid-off car. Visit someplace you've never been before. If that's not your thing, perhaps a short drive to your favorite drive-thru restaurant can mark the occasion just as well.
Whatever you decide, you should be proud of what you've accomplished, as it's not every day that you get to celebrate owning something after a long period of waiting and hard work.
Check out upgrades for your car
Now that you've freed off a significant chunk of your monthly budget, you may want to start thinking about sprucing up your vehicle. Have you always wanted premium tires? Maybe you want a more robust head unit and a nicer-sounding speaker system? You can even augment your vehicle's performance by upgrading the braking system and suspension.
The possibilities are nearly endless. You can look to other owners for inspiration from their builds. It could motivate you to build something that's uniquely yours and something you'll be happy to drive wherever you end up.
At this point, you've probably had the vehicle for several years, so only you can know which parts need work and which parts are worth keeping. If nothing else, be proud of what you've accomplished and finally relax as you marvel at the car you now own in full.