Pay it off and just make the monthly payment to yourself. Then you can actually call it your bike, because right now the bank owns it!
It will run a lot better when it’s not dragging a payment book behind it.

 

Keep the money in your savings account, and pay double payments.

 

Exactly

 

like you I have about 20 payments left on my truck.I was going to pay it off .I called for my payoff amount than I multiplied the months I had left times the payment .And I figured if I paid it off I would save about 175.00 .It was not worth it to ME.I kept the money in the bank.

 

You already paid most of the interest. While the thought of having title in hand is appealing, the "Rainy Day Fund" is more important, and the interest you'll save is negligible at this point. Double up on the payments and you'll be done sometime in the summer.

The only way I'd pay it off is if you had some insane interst rate. Figure out how much interst you'll be paying over the next 20 months. The idiots version is to multiply your payment amount times months remaining. Then request a payoff amount over the phone and subtract that from the first number. Then decide if that amount is worth depleting your savings for.

 

just stop paying the loan and ask for a bail out

 

Had this same dilemma with my truck. Pay it off and make payments to yourself until your savings is back if you don't anticipate having anything come up. Huge relief and sense of accomplishment when getting that title in the mail with the lien released stamp.

 

If it was me, I would pay it off. Not sure what interest rate you are paying but I am sure it is alot more than what you are earning in interest on your savings. Subtract the percent you are earning in interest on your savings from the percent interest you are paying on your loan and this is what you will be saving. The only time it become more cost viable is if you buy a bike using a home equity loan. This interest is tax deductable so it becomes a better deal.
As for rainy day, it is a dice roll. If you have a credit card you can always use that as your backup incase one of those unexpected circumstances happens.
Like everyone else said, if you do pay it off put that payment right back into your savings. It will grow back quickly

Again if it was me I would roll the dice and pay it off.

 

I'd pat it off. Mainly because if that rainy day DOES come, you own the bike outright & wouldn't risk losing it for missing payments.

 

Scenario 1: Bike is paid off. Lose job/Family medical emergency/Tree falls on roof. No money in savings. Struggling to pay for food, mortgage, electric, insurance, taxes, etc. But at least you can ride. Wait, can't afford gas. Wife is pissed off.

Scenario 2: Bike is not paid off. Lose Job/Family medical emergency/Tree falls on roof. Rainy day money is in savings. It's raining. All bills are getting paid, including motorcycle. Lenders will negotiate with you for deferred or interest only payments if things get real tight. Wife is impressed with your economic savvy. You get to use the word savvy.