I understand the appeal of not having a car payment - it's one less expense you
have to make, and thus not having it gives more freedom. You don't sound like you need to cut that expense from a day-to-day making ends meet persepective, nor do you sound affraid of losing your job (which would cause you to have to cut reoccuring expenses in the future).
The counter option (this is assuming your $17k is currently sitting in a lessn-than-inflation savings account) would be to put the money into a 'safe' investment that is easily converted back to cash in the even that you are otherwise unable to make a car payment. I wouldn't do anything with the stockmarket because you want to be able to withdraw the money regardless of the stock market's daily value, but there are other options (I'll let an investment savvy mustachian chime in on those).
Simplified my thought it is:
- Paying off the car will give you a sense of satisfaction (no car loan!) and more freedom
- Keeping that money invested in a low return but highly liquid form will provide more net value, while still giving you the freedom to pay out the car if something happens and you need to cut expenses
- Paying off a higher interest debt will have a larger impact on your overall net worth, but will cost you the freedom of 'no car payments' and potential to payout the car if you suddenly need to cut expenses
- If all your debts are low interest, you could instead invest the money in something less liquid but higher returning (that investment property or putting it in your 401K will provide 'instant return on investment' in the form of reduced taxes). At your level of income, how much taxes are you really paying? Not knowing anything about your tax situation, I would assume it would be pretty minimal, even if your sole-pri is doing well (Congratulations! Breaking even is never something to complain about!).
How important is the want for the freedom of not having a car bill, versus the want for the investment property? Personally, I'd go the middle route of an easily cashed investment, but that is because I'm rather risk adverse. If I was feeling more adventurous, I'd go the invest-it route.