Buying a new car - cash or finance?

Submitted by vvreditt t3_127vpg4 in personalfinance

Hi all,

Wanted to get opinions on buying a new car with cash vs finance.

We have about 20months of rainy day funds available AFTER paying for the car entirely with cash. Given the current market we're planning on holding on to cash instead of investing. With these factors is it reasonable to make a cash purchase?

Thanks in advance.

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Comments

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IceCreamforLunch t1_jeg0nqs wrote

If the cash is just going to sit there collecting dust you might as well pay cash for the car and avoid the auto loan interest.

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Taco_Fries t1_jeg27r6 wrote

If you don't need the credit boost from the loan, I'd go for it. It's losing money if it's not sitting in a high-yield savings anyway.

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ThagAnderson t1_jeg4wth wrote

You can very often get a better deal by financing, then just wait a month and pay the whole thing off. That being said, purchasing a new vehicle is a bad financial decision regardless of how you pay for it. Always better to find something reliable and used.

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Scary-Celebration-98 t1_jeg6vru wrote

They’re predicting a recession towards the end of this year. If you’re in no rush, might as well wait for 0% deals to arrive

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BourbonGamer t1_jeg7k6d wrote

What rate can you get now for your new vehicle. We just got Hyundais 0% rate. If you can’t get 0% for the particular vehicle you’re looking for Id imagine cash is the play.

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