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Should I finance or pay cash?
Paying cash avoids interest. Financing keeps your cash invested. Whichever earns more wins — and with car loan rates where they are, that is usually closer than people expect.
The purchase
VEHICLEDealer incentives
These are normally alternatives, not extras — a dealer offers a discount for cash or a rebate for financing, and you take one. Both start at zero, so nothing is assumed until you enter what you were actually offered.
A cash discount lowers what you hand over today. A finance rebate comes off the amount borrowed, so it cuts the payment and the interest. A promotional APR goes in the loan rate above — at 0% against a positive after-tax return, borrowing is free money.
What your cash could earn
ALTERNATIVEA high-yield savings account or money market is the fair comparison — this money needs to stay safe. May be negative.
Enter the vehicle price to compare financing against paying cash.
All four happen in your browser. Your figures are not sent anywhere — the email opens in your own mail app, already filled in.
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