There are a ton of reasons taking a loan is better than buying outright if you have any sort of risk tolerance and you can get a low APR. Over 5 years, on a 20k

There are a ton of reasons taking a loan is better than buying outright if you have any sort of risk tolerance and you can get a low APR. Over 5 years, on a 20k car, inflation would have eaten ~2k purchasing power of the loan, while the car's value isn't affected. 2014-2019, S&P500 has returned >10% (inflation adjusted). AND you can always trade money for a lien free car, but it's a lot harder to trade the car for money (you're gonna still need a car and title for loan deals aren't great). Taking a loan out for the car means I'm buying a 20k car for 18k, being able to return 10% a year on the money I borrowed, with the ability to pay off the car anytime I want. Buying a car in cash is for those who can't get a low APR loan and/or are too risk averse to use debt properly.