What would you do? Loan payoff question.

The amounts are made up but the question is accurate.

-> I owe about $12000 on my vehicle. The loan is at 3.00% and has a couple years to go.

-> I have a CD maturing next week for a substantial amount, well over what it would take to pay off the vehicle. The best rate for a CD that I can find is 1.25%. Lousy. I don’t have an immediate need for the money; it will sit for a couple years.

My inclination is to pay off the vehicle with the proceeds from the CD. Why pay 3% each month when I am only earning 1.25% interest? And I’ll have some extra cash in my pocket each month which I can save if I want.

This seems to be an obvious no-brainer. What am I missing? Why not pay off the vehicle?