Good choice. Sounds like you’re doing fine; whatever couple hundred dollars you may or may not have earned by investing that money instead isn’t going to make or break you at all.
Thanks everyone for the input
You’re welcome. Loans at rates you’re paying now are quite likely to become a thing of the past so you may want to consider that. We’re probably an interest rate hike away from GIC’s paying more than what you’re paying on the car loan.
Something to think about: any comparable investment would have to give a guaranteed return of 3.74% per year for the next 4 or less years (you didn’t say how many years were left). Savings accounts won’t get it, money markets won’t get it. A dividend stock might pay out over 4 years without decreasing in value, but it might not.
I don’t know of any investment that can make that guarantee (unless you have another loan with an even higher rate that you haven’t mentioned).
Meh, I’m just going to drive the car for 5 more years, at which point it’ll have only 60k miles on it. Who knows what the landscape of 2027 will be like?
That’s a very good point. This is one of those situations where there really isn’t a “wrong” answer.