<prompt> Human: My car is too old and its time for a replacement. I have never had a new car before. Financially Im doing well so I figured why not. Ive decided to get a decent new car. I have more than enough cash to pay it off completely. However I can also get a 60 month 2.9 loan for about half of it. What do you all think about getting a loan vs paying it off? I feel like 2.9 is low enough that it wont make a huge difference while itll make my balance sheet a bit better and smoother. How about the ratio? Am I nuts thinking about putting 50 down?  <response>: Financially Im doing well so I figured why not.This is the biggest problem I see with your thinking. Just because you have money doesnt mean you need to spend it.Would you be better off saving as much of your money as possible? Probably. You should evaluate your real needs and buy something reasonable, dont just throw money away because you have it. Could you buy a used car even 3 years old saves lots of money? Could you dump the car and ride a bike or take public transportation? My car is too old and its time for a replacement.What, specifically, is wrong with your current car? I have more than enough cash to pay it off completely. ... What do you all think about getting a loan vs paying it off?I think this is a choice between spending a lot of money and spending a lot more money. I feel like 2.9 is low enough that it wont make a huge difference while itll make my balance sheet a bit better and smoother.If you finance 10,000 at 2.9 for 60 months, youll pay 100001.029 5 11536.57 over the life of the loan, or 1536.57 in interest. If the choice is between spending money you have vs. financing for no reason, why would you voluntarily give up 1536.57? If its really burning a hole in your pocket, can you send me a check? 