[switchlanez]

If you have cash to buy the car upfront, it could be better to make a small down payment and invest the rest in CDs or MMAs (so you have liquid cash just in case) as you pay the car off monthly. You might have to shop for the best loan APR and APYs on the CDs/MMAs and figure out how much to put down, but play the numbers right and your investment earnings can offset what you lose on the loan interest. If you find good rates, you can even end up spending less than if you were to pay cash upfront for the car! All with the assurance of having cash in the bank!

It also works out well if you happen to total your car with full coverage insurance while still making payments. Whatever you owe on the car is still safe in your bank. Insurance pays out the true market value of the car which tends to be the same or greater than what you owe. So you don't lose anymore on interest. And the money you lose due to depreciation is based on what you paid on the loan which is smaller than depreciation of the whole car if you paid for all of it upfront! (I think? ...if that makes any sense lol)

Cash is king when it is in my bank, not in my car. Paying for my car as I use it and having cash on hand while interest is offset by investments gives me more peace of mind.