<prompt> Human: I have saved up enough money to buy a car in cash but now it seems like it would be better to finance the car. My savings is earning 1.3 and I found out I could get a loan for 0.9. Am I correct that the loan would be a better option than using the money in my savings?  <response>: Generally that is correct. Remember also that financed cars carry additional insurance costs that are required by lien holders, but are optional if one purchases a car outright. If you were planning on carrying full coverage anyway, then this wont apply. 