Buy vs. Finance: Car Comparison

Both scenarios start with CarPrice + TotalLoanInterest in cash. Finance withdraws monthly loan payments from the invested pool; buy outright spends CarPrice up front. Whatever's left in the pool earns ROI.

Car Price ($)

Down Payment ($)

Loan APR (% / yr)

Loan Term (months)

Depreciation (% / yr)

Investment ROI (% / yr)

Horizon (months)

Buy Outright — averages over horizon

Monthly payment

Depreciation / mo

Loan interest / mo

Savings interest / mo

Net cost / mo

Net worth at horizon

Net worth advantage / mo

Finance — averages over horizon