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.

myFICO is the consumer division of FICO. Since its introduction over 25 years ago, FICO® Scores have become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use FICO Scores to make consumer credit decisions.

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