<prompt> Human: If one has cash from, say, an inheritance, is it better to buy a car outright for cash, or take out a loan for the car and invest the inheritance? Or split the difference, putting a large down payment on the car to reduce monthly payments?  <response>: Depends on what kind of interest rate you can get. If you think you can make more from investing its better to take a loan. Monthly payment amount shouldnt really matter, given your can afford to pay it off in full 