<prompt> Human: His argument is that the rate of return Id get from investing would be greater than the interest rate of the car loan. Is that sound advice? What are the pros and cons?Thanks!EDIT: Its a five year loan.  <response>: Its an interesting question, but what I realized is that optimizations on these smaller amounts arent worthwhile. The time scale isnt decades, and the principle isnt huge. My preference is simplicity, which means paying down the loan today. The exception I make is if theres employer matched money somewhere. In that case, take the free money. But if youre so low on cash that youre considering shifting a few thousand around to make these small gains, its better to just save it up in normal savings until you have enough to not worry about liquidity issues like this. Youre time is better spent figuring out making more money than optimizing small loans. 