ziggy29
Moderator Emeritus
There used to be larger cash incentives in lieu of zero or cut rate financing, but now that people with good credit can get car loans for under 4% the cash value of the lower financing isn't much. So in reality, if there is no substantial cash rebate or incentive to decline the low-rate financing, I'd pay cash on it. Though if the interest rate were low enough -- low enough that you can earn more in savings, money markets and CDs that don't exceed the loan period -- you can make a case for financing, knowing that you have the cash in reserve to pay it off at any time.
That said, we decided to pay cash on my car last July mostly because I don't want to deal with the payments or the debt, and we already had the cash tucked aside for that purpose.
That said, we decided to pay cash on my car last July mostly because I don't want to deal with the payments or the debt, and we already had the cash tucked aside for that purpose.