Finance vs. Cash Calculator
Compare the opportunity cost of paying cash versus financing your next vehicle.
Purchase Details
The return you could get if you invested the cash instead of buying the car.
Pay Cash Scenario
$14,000
Estimated Net Worth at Year 5
- • Total Interest Paid: $0
- • Cash Left to Invest: $0
- • Investment Growth: $0
Finance Scenario
$52,581
Estimated Net Worth at Year 5
- • Total Interest Paid: $6,089
- • Cash Kept Invested: $35,000
- • Investment Growth: $9,670
Net Worth Trajectory Over Time
Includes the depreciating value of the car, remaining loan balance, and investment growth.
The Verdict
Financing and investing your cash yields an estimated $38,581 MORE over 5 years compared to paying cash, because your expected investment return (5%) outpaces the cost of the auto loan (6.5%).
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