Should I finance a car or pay cash for it?
This auto calculator could help you find out what might be the best move for you.
Paying for a vehicle can be a large expense. Our auto loan calculator can help you determine whether it’s overall less expensive to pay for the vehicle with cash or purchase it using financing. Typically, the interest rate you receive on a savings account will be less than the loan rate. But that’s not always the case when manufacturers offer incentives. Once you enter the vehicle purchase price, interest rates for the vehicle loan and savings account, along with the number of months for the loan, the calculator will determine what the loan payments would be. It will also display if you’ll save more overall by paying cash.
If you have an emergency fund with 3 – 6 months of basic living expenses saved, try to refrain from taking money out of that fund for your new car.