Most people think buying a car with cash is better than financing, simply because you don’t have to pay interest.
Generally, if the interest rate you earn on your savings is lower than the after-tax cost of borrowing, paying cash is the way to go.
However, you don’t have as many options when you pay with cash.
Is it better to pay cash for car or finance?
The common thinking is that buying a car with cash is better than financing because you won’t have to pay interest. When you’re financing, you have to pay off the car with interest, and that means you’ll end up paying an additional amount on top of the car’s purchase price.
Photo in the article by “Pixnio”