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Should I buy a new Mazda CX-9 with cash or take 0.49% financing?
I have the money to pay cash for a brand new Mazda CX-9. However, the dealer is offering 0.49% financing for 48 months, which seems like it's a great option as well. Should I pay cash or take the financing?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Paying cash for a car is always a great option if it doesn’t present liquidity issues or deplete your emergency funds.
That said, 0.49% is a great rate. If you can invest the principal that you would pay in cash in an investment that nets you a 0.5% return, you’re making some money on the deal. That’s because you’re borrowing money and making more than the interest rate for borrowing, much like banks and investment groups do.
Having a monthly payment and loan can also help increase your creditworthiness, as long as you make your payments on time.
However, with financing, you will likely need to keep full coverage
car insurance
on your vehicle as part of the stipulations of your loan. Before you decide between your payment options, you should request
car insurance quotes
from several companies. By doing so, you can get an accurate estimate of the cost of financing your vehicle versus paying in cash.” View full answer
- Gregory R.
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