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?

“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.”
Eric Schad
Answered on Jul 30, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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