One reason to get a loan on a car is that you would have an investment that might pay more. For instance, I have an investment that gives me 10% on my money. But the car loan is 3%. By getting the loan I would be making 7% on the money - but I would be using the money to get the investment.

But I agree, I only pay cash for a car. My biggest reason is that when you get a loan you are required to have a ton of insurance. I like to just have the minimum insurance so I pay cash. Other good things of paying cash.

- You have more negotiating power to get a better deal.
- none of the "extras" they try to sell you while you are waiting for finance to come write up the paperwork.
- IMHO less paperwork.

Leasing is technically only paying the depreciation on the car. Thus the payment is much less than if you had a car payment. I always wondered how some of my very poor friends were able to ride around in expensive cars. But for me this is also a bust because you must maintain a full slate of insurance (plus numerous other costs at the end).

Another tip, be sure you use "true car" and "kelley blue book". My last car I went in with both in my pocket, true car for the new purchase and kelly for the trade in.. and they gave me exactly what those indicated. I agreed to both and we had a deal. Easy peasy. But had they tried to snow me on either I had the paperwork in my pocket to tell them they were over charging.

What are you thinking in terms of insurance? Be sure you are getting what you need. When I first started driving my insurance agent loaded me up with everything under the sun. When I finally started questioning what they were for, I thought a lot of it wasn't worth it. EVERY SINGLE YEAR... my insurance agent, no matter who they are, loads my policy with everything they can and I have to tell them to remove it. If you are a good driver I would probably only get the basics.