DIVERSION IMPACT TOOL

Car Loan vs. Cash

Compare paying cash with financing on equal footing: invest the cash retained by financing, or invest each payment avoided by paying cash.

MODELED WINNER —

LOAN PAYMENT — Estimated monthly

FINANCE CHARGE — Estimated interest

PAY-CASH ENDING POSITION — Avoided payments invested, plus resale

FINANCE ENDING POSITION — Retained cash invested, net of loan balance

DECISION FILTER

Choose the funding method—not the smaller-looking payment.

The winner changes when the loan APR, investment return, down payment, term, or holding period changes.

Illustrative estimate. Both strategies assume the same vehicle, resale value, and ownership costs. Paying cash invests avoided payments; financing invests cash not spent at purchase. Taxes, investment volatility, loan fees, and timing are excluded.

← All diversions

CONTINUE YOUR FLIGHT PLAN

Use the comparison to choose how the car gets funded.

RECOMMENDED NEXT MOVE

Confirm the payment fits cash flow

Keep the vehicle decision inside the dependable monthly surplus.

OPEN → 02

Assign the retained cash

If financing wins, give the unspent cash a real job instead of assuming it gets invested.

OPEN → 03

Compare the vehicle loan with other debt

Put every balance, rate, and minimum payment in one payoff order.

OPEN →