<prompt> Human: My wife and I disagree on how to approach our new car loan. Were planning on putting down 10K on a used car and finance the remaining 7-8K. Weve been pre-approved for the loan through our credit union at 1.95 interest. Is there any advantage to paying off the loan as fast as possible 3-4 months as opposed to making the monthly minimums at our low interest rate? We mostly put her entire salary into savings 3.5km, but we are trying to save for a down payment on a house.  <response>: This is all about context -- do you have any more expensive debt to get rid of, or any better use for your spare capital? 1.95 is cheap money to rent. Youre not saving that much by paying off that loan fast. I would let the loan tail out on schedule and sock away your spare capital for the house. 