Cash or Loan?

[AntlerCollector]

If your credit is good enough for 0% then I agree with the others. It makes no sense to pay all that cash up front. Unless you don't want to mess with paying a note every month. You could invest it and earn money back with said cash. I financed my last two vehicles with 0% and there's no reason to pay them off early.

[CaptainDave]

If you're going to do cash, you can probably actually do better by financing it and then paying the loan off right away. Dealers make money off the loans, so they'll often times give you a little better price if you finance it (dealer incentives, etc). Just make sure no pre-pay penalties, etc.

This.

If the car brand has a preferred lender, often they will be willing to give you a credit to incentivize you to use said preferred lender. The trade-off may be a higher interest rate; however, if you were planning on paying in full, just pay-off within a few months. These incentives can be a couple thousand off your already agreed upon purchase price.

Double check for prepayment penalties, but most agreements don't have them. These lenders assume most people are not going to payoff a note within a few months.

[J Wales]

The opposite is also often true. When they offer 0% interest , you often have the option of the low interest rate or a rebate (it was $2500 when I bought my truck). In that case, you are paying $2500 for the 0% interest. You just have to do the math and see if it is worth it to you.

[E.TX.BOWHUNTER]

Take the financing and be sure there is no pre-payment penalty. Pay it off with the first payment.

[Dirtymike]

low interest get a loan. Let the insurance company carry the risk of a TL.

[BrianL]

Financing does a couple things, it normally has an increased rebate amount and adds an additional line to your credit bureau. AS people get older they tend not to finance as much and their credit score can be hurt as a result. I would finance for 6 months. Amount of interest won't be much for that term.

[texasdeerhunter]

If you can get a low rate, finance it. A dollar today is worth more than a dollar tomorrow (inflation). So weigh your roi today vs the interest rate you can get.

[M16]

When you get a so called 0% car loan the interest is figured in the price. Do you really think you are getting something for free? Usually you can choose between a rebate or an "interest free loan." What ever you do don't finance it if you intend to pay it off right away. If you do you paid for the interest upfront.

[skinsfan]

Risk....

[ReydonPete]

When you get a so called 0% car loan the interest is figured in the price. Do you really think you are getting something for free? Usually you can choose between a rebate or an "interest free loan." What ever you do don't finance it if you intend to pay it off right away. If you do you paid for the interest upfront.

Agreed

I paid cash for my last 3 vehicles and loved not having to worry about a payment each month, it leaves me with cash to do other things such as buy new blind or feeders etc to maintain lease, and vacation money etc
That being said I think it’s probably a decision each person has to decide what fits their lifestyle, just have to decide what’s important to you as a buyer

[BlackoutRam2500]

Too many variables to say for sure without more information. For me though I prefer the 0% financing option. Cars have gotten much more expensive than they used to be so tying up that much cash usually doesn't make sense if you have AAA credit and can qualify for whatever you want at stellar interest rates.

[Baker95]

Give up your cash, give up your opportunity. Great deal comes along do you want a paid for vehicle or flexibility? Not to mention if you get hurt, fired, or something happens. Paying cash to avoid interest is not as smart as it sounds.

[300rem7]

If you can invest the cash and achieve a better ROI than the interest on a loan, then you are better off going that route.

[White Falcon]

Well it will be a car for my wife. Both are in our 70's, good health, and retired. The cash will not be missed. Have always paid off loans early, guess that is why I don't like loans. Never lived over my means, but very comfortable. Just wanted some thoughts and different opinions. Thanks all!
Cash it will be.

[M16]

P.T. Barnum was right. Add $2500 to the price of a vehicle and "give" people a 0% loan to buy it. Then listen to them crow about their 0% loan.