Is it better to pay cash for a car?

Paying cash avoids interest and monthly payments, which saves money over time, but it isn't always the best choice for everyone. If a manufacturer offers very low promotional financing, you may come out ahead by financing and keeping cash for emergencies or other goals. Also make sure paying cash won't drain your emergency fund. This is general information, not personal financial advice. On OffLot, the Build your deal flow lets you compare buy, lease and cash side by side.