* The long-term saving is how much the net present value (NPV) the
plan can create.
Buying with all cash usually creates no savings at the moment you buy the car because
we assume the car price is fair so the NPV is zero. However, using a auto loan may
create more or less NPV than buying with all cash, depending on your opportunity cost of
using that cash. When your investment yield is higher than the loan rate (APR),
you can generate more investment income than the loan interest payment, bringing you
more cash inflow in the long term. In financial terms, professionally, your NPV of
utilizing a auto loan will be higher than the NPV of buying with all cash.
** The winner plan you may consider is the one creating the highest savings as it
brings a better financial outlook in the long term.