A friend asked me that question and here's what I told him:

It depends on your interest rate. If you have a really low interest rate on your remaining car loan -- let's say it's 0.9% -- and if you can get more for your money elsewhere such as in a CD or a bond fund, then don't pay off the car early.

But if the interest rate is higher on the car loan than you can get paid for the money elsewhere, then yes, pay off the loan.

It always makes sense to pay off loans early, but I suggest you follow this rule: Pay off the loans with the highest interest rates first. Typically, car loans are always low because car dealers and auto makers subsidize loans to help sell cars.

Especially if you have outstanding balances on credit cards with rates that can be 20% or 30% you should pay down or pay off the credit card loans first before paying off the car loan at a much lower rate.

Did I give him the best answer? Do you have some tips?