SHOULD I FINANCE OR PAY CASH?

If you have the cash to buy your new car outright, should you? Paying cash may be the best option if the interest rate you earn on your savings account is lower than the after-tax cost of borrowing. Other benefits include no interest, no finance fees and no monthly payment. However, paying cash may deplete your rainy-day funds. Use the calculator below to find out which option is best for you.

Good to Know: Some dealerships may offer special incentives for financing. Ask about all of the potential perks before making a final decision. Also, consider the positive impact an on-time payment history may have on your credit score over time.