<prompt> Human: Assuming the buyer has good-to-excellent credit: Why would someone ever purchase a car in all cash if many US dealerships are providing interest rates anywhere from 0 - 4. Further assuming the person is saving up for a down payment on a home, which is arguably the most difficult aspect of getting into a home, doesnt it make sense to keep the cash and pay the small interest hit? You cant get a loan for cash less than 6-10 these days, so really financing a car is one of the best deals out there, assuming you want to keep your cash to get into a home. Ive always known that taking on debt is never a good idea, but Ive suddenly found a situation where it may make the most sense.  <response>: If youre trying to save up money to get into a new home, you probably dont need to be financing a new car just because the interest rates are low. Buy a beater with cash. 