<prompt> Human: Basically I want to buy a used car. The car is 25,500 and I have 40k in the bank.At first I was shopping for loans and trying to calculate payments, but then it hit me... why would I want to pay interest to borrow money I already have? I mean, buying the car outright will cut the funds at my disposal more than half, but I would still have roughly 15k as an emergency fund and I would slowly build up the account over time to what it was anyway.What do you guys think, is it better to have more money in the bank and a large car loan, or forgo a loan whenever possible provided youre still left with an acceptable amount of padding.  <response>: If you think the remaining money will sufficiently cover you in an emergency, then do it. In the extremely unlikely event your bankemergency fund is earning a stellar interest rate and is higher or really close to whatever loan you can get, then get the loan. 