[hurricanetc]

You can finance a cheaper car. Buying with cash carries a large opportunity cost due to compound interest being a helluva drug.

If you can finance at an interest rate below what you are earning in the market then you are better off financing. People who pay in cash are leaving money on the table for non-financial reasons.

[VBprogrammer]

It seems improbable that dealers / manufacturers can't do simple compound interest calculations too. If they are offering loans at below market rates they are basically giving you a discount on the cost. If they are willing to do that then you should be able to get a similar discount on a cash basis.

[hurricanetc]

Fed rates are low enough that banks can borrow and offer financing at seemingly impossibly low rates while still making money.