Should I finance or pay cash for a vehicle?

The calculator shows whether it is cheaper to borrow money to buy a vehicle or to pay cash.

Generally, if the interest rate you earn on your savings is lower than the after-tax cost of borrowing, it is cheaper to pay cash.

However, you face a potential loss of financial flexibility. For example, you may have depleted your rainy-day funds as a result. The risk of not having an adequate emergency fund may be one you are not willing to accept in exchange for paying cash.


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