Pay down the loan. I'm assuming you're young, so you can afford to fudge a wee bit on saving for retirement (seems a long ways off dosen't it). Assuming you're young, you need to be more worried about credit score. When it comes to the real world, if you can borrow more, you can make more. Let's just say you take 5 years to pay off this car loan... in the mean time you meet some cute college girl, get married and have a kid... in 3 years, but you still have two years left on this loan... well that sucks... If you paid it off creditors look at it and that's a big check mark for you so you can get approved for a home loan, so you get a home loan, even if not huge, but you have a neat little house, wife kiddo, and a puppy (the kiddo wanted it). Since you don't have any debt other than realestate, you managed to land a job, and you're married, your credit score goes... ... .. UP! low and behold, in about 3.2 years on national average, you can start borrowing against equity of your home for investment (or whatever, but hopefully investment). Point being... 0 debt with 5% investment at 25 is far better than 10% debt with 10% investment at 25 due to compound interest. Pay off the loan... it's better (unless you're over about 50, then you shouldn't be asking for finance advice anyway)
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