Car: cash or credit?
July 1, 2013 9:36 AM Subscribe
Does it make any sense to finance a car if you have the means to buy it outright with cash?
posted by falldownpaul to Work & Money (28 answers total) 7 users marked this as a favorite
The car I'd like to buy is just under $30,000.
I have $60,000 in savings and no immediate need for it... I've been saving it up for years to buy a house "someday". But finding the right house has been long and difficult and who knows if/when that's going to happen.
I have excellent credit and could easily get financing for the car.
I also have a modest but steady income stream and, while it would take a few years to replace 30k, I could rebuild my nest egg over time.
Is it smart to hoard my cash and finance the car... or stupid to take out a loan when you really don't need to?
(Oh, there is a "cash back" bonus of $1,000 on the car. Not really a deal breaker either way for me.)
Thanks for your thoughts!