Ok guys so I'm kind of in a unique situation.
As a graduation present my parents have presented me with 2 choices. They will either pay off my truck or give me $6500 that can only be used for investing purposes.
Currently I owe around $10700 on my truck and will be paying until 7/01/17. If my parents pay it off I will pay them $4500 over the next 18 months and then they will cover the rest ($6200) or they will give me $6500 and I will continue to make payments to Toyota. My interest rate with Toyota is 2% and my payments are $254 a month. I have no problem being able to afford these payments and I will have to continue making them for at least 18 months either way.
I figured that over the next 47 months I will end up paying Toyota $12200 for the truck so it would be a loss of $1500 if I keep paying for the truck. However on the other end there is the potential for a loss of money or not making any money. I already figured that if I invest $6500 and it makes 4% I will see a return of $1100 so if it only makes 4% I'm in the hole $400 but I already have money invested and if I let it sit another 5 years that amount increases.
So my question is which option would you guys recommend taking? Option A) pay the truck off, or Option B) take the money and the risk and invest?