<prompt> Human: Im 28, making 72K annually. I need to buy a new car but am torn on whether I should finance or pay in cash. Ive got about 45,000 in my bank account, of which 10,000 is my emergency fund. Im saving the rest up to eventually buy a house. Side note: I was going to put a majority of those funds in a 5-year CD this month but life suddenly happened and Im now without a car in a city where cars are required for anything. I save 975 a month of my take home pay at a minimum usually more as I dont end up spending the rest of my money. Given this, Im not sure whether I should finance a car or pay in cash. Im looking to buy a car around the 10-15k range so I know if I needed to, I can pay for the whole thing in cash. However, Im young and dont have much credit. I graduated college debt-free so the only thing on my credit history are two credit cards. My score is decent mid-to-high 600s, though. Given this,- should I get an auto loan to help build credit? I was thinking perhaps I can put in 9k as a down payment and get a loan for an additional 5-6k if needed. I figure I can dip into my savings to aggressively pay back to the loan every month to limit the term to 12-24 months so that Im not paying a ton of interest.- if I should get a loan, where can I get the best interest rate? Anything else I should consider or be wary of?  <response>: You should pay in cash. You should never have to pay interest to build credit. While yes, an installment loan will likely help your credit out, youd be needlessly paying interest on a loan when you have the cash to pay for the expenditure, and thus paying money you dont have to.Should you decide to move forward despite that info, look at a credit union for the the lowest rates andor let a dealer matchbeat the lowest rate you find if youre shopping at a dealership note: dont mention youre financing the car until youve agreed upon the sale price of the vehicle. 