>> I could pay off my car tomorrow. But I'll have more money in the end keeping that cash in the bank. Why would I pay it off early?
> Your logic works out fine if you don't mind a dash of risk (e.g. from a job loss).
I notice that no part of your comment actually describes this risk. What is it? Assuming you have the cash in hand, and it's earning more interest than the interest on your car financing, how would losing your job affect the situation?
The only effect I see is that it will dramatically increase the amount of that extra interest you actually collect, by lowering your tax rate.
> Your logic works out fine if you don't mind a dash of risk (e.g. from a job loss).
I notice that no part of your comment actually describes this risk. What is it? Assuming you have the cash in hand, and it's earning more interest than the interest on your car financing, how would losing your job affect the situation?
The only effect I see is that it will dramatically increase the amount of that extra interest you actually collect, by lowering your tax rate.