Should I get a car loan for a Mustang if I have the cash to pay it off?

"I have $30,000 saved up for a Mustang. However, I was wondering if I should get a car loan anyways.

Is it better to pay cash for the car or get a loan if I was quoted 3.19% on a 48-month loan?"

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Eric Schad
Answered on Jun 16, 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.
“The idea here is whether you’re an investor of any kind. In most cases, you should get the loan and take the $30,000 and invest it.
If you can earn more than 3.19% on your $30,000, you’re actually breaking even or coming out ahead; essentially, you’re getting a 0% interest loan.
But if you’re just going to leave the $30,000 in a savings account that gets 0.1% interest, you’re better off paying cash for the car, or at least making a big down payment.”
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