Pay off the car or... not?
September 5th, 2014 at 04:25 amSo few days ago I've decided to work on paying of the car.
My logic was - market is high right now, maybe it is best to first work on paying off the car, than afterwards, dollar cost average freed up money into SP500, and to designate that savings towards the "pipe dream challenge".
But, since seeing Creditcardfree's post I looked up the Navy Federal special offer of 5% CD (for maximum of $5,000).
Now, while it is not much, it is an awesome rate for a CD, which is guaranteed.
So the logical part of me does struggle with it -- the interest on the car loan is 2%. The interest on a CD is 5%. And it is guaranteed and risk free. So even after taxes, mathematically I would come ahead. So how can I justify paying off the car?