<prompt> Human: If my net worth outside of retirement accounts is 30k, would it make sense to pay for a new car 25k in full cash? After trading in my old car for 7k kbb it should only be 18k out of pocket. This would reduce my savings to around 12k which is still enough for an emergency fund of 3-5 months. Am I sacrificing too much investment returns by throwing that money away? Would it make sense to pay down 50 and finance the rest? I have good credit with 0 in debt, so I assume I could get a decent rate.  <response>: If you can get 0 or 0.9 I would do all 18 K financing. If you have to pay over 3 Id pay in cash. Anywhere in between, do some combination of cash and financing. 