Tell me this....

If you can finance a car for 3%, why would you take cash out of a savings plan that accrues more?

Is there a reason other than the freedom of owning the car that day?

 

Last thing you should do is touch any savings plan-for a damn car no less. You are right.

 

You wouldn't unless your old car died and you needed a new car so you could get to work and make moneyto live off of and add to your savings account.

 

Whywould you ever take appreciating money and depreciate it? It's like lighting it on fire.

 

Those are my thoughts exactly, but I've seen some interesting ways of looking at things in this forum, that I hadn't thought of before.
I whole heartedly admit I'm just not that much of a money person. I save when I can and try to play with my retirement to optimize it, but money truly bores me.

 

It's the same old story - if someone is letting you have their money at 3%, and someone else wants your money for 8%, you're in luck. And that's what the car people do - give you low interest rates, so it's crazy not to take them up on it.

 

One of my lines of thinking is this... does it make a difference to the dealership if you come in paying cash vs financing other than the paperwork? Ie... if you offer them cash money, will they typically make a better deal on the car?

 

Get your financing before you go in there and don't tell them you are not financing with them until you agree on a purchase price. They are always willing to give you a better deal if they think you are financing with them because they will get you on that end.

They will not give you your best rate, they will only give you what they think you will accept and they will take kickback from the bank for signing you. It is easy to get approved by another lender before you go in and you know you are getting the best rate available.