<prompt> Human: Im in the market for a car and Ive been saving and have steady income. Im not good with finance and wanted to ask the resident gurus here if theres any reason not to pay the amount due in full right there and then? Price negotiation aside  <response>: First thing I can think of is that occasionally on new cars, the factory will offer discounts if you take the financing thru them. They are hoping to make the discount back in interest on the loan, but you can just take the loan and then pay it off immediately. Other than that, the only other thing would be say you are being offered 0.0 or 0.9 financing on a 60k Mercedes, its not unreasonable to think that you might be able to do better than 0.9 in the stock market, so you take out a loan, invest the cash and make payments. So in that case, youll have made a profit on your investment that was greater than the interest cost of the loan. However, that obviously depends on your luck with your investments. 