2021 Mazda CX5 GS , cash vs finance

Difference for Financing should only be interest paid and additional cash price discounts/incentive.
The dealer should apply the $500 Mazda Loyalty whether you pay cash or finance or lease.
What does the $1750 discount in cash purchase represent? Did they tell you why financing can't get this discount as well?

Given the 0% Finance rate, no point in paying bi-weekly, you rather pay monthly.

sngs0850 wrote: ↑ I always prefer buying with cash but just with 2250 difference , It would even out just with 1% TFSA .

36000 and 38875 is 2875 in difference, not 2250.

Even out at 1% annual compound on $36K is 8 years. Not 6.

Other than that, cash vs finance is all about what you can leverage with cash. Almost anything out there is better than cash on a depreciating asset... for now.

And since you mention TFSA, there is RRSP as well depends on what you need and may get you bigger bang for your $ depends on your income situation.

sunnykw2305 wrote: ↑ Given the 0% Finance rate, no point in paying bi-weekly, you rather pay monthly.

It's psychological. Dealer love smaller numbers to sneak stuff in or remove discounts. But if you are bargaining right, it's basically the same you would pay yearly at 0%, just in 26 payments or 12. So it really depends on your cash flow situation. Gig economy workers will probably prefer 26 while salary workers probably prefer 12.

Pay it Cash.
The difference is not big, but use the money to pay off the car since you have it now and before you spent on something else.

Also, dealer may charge you admin fee for financing and not telling you until you sign the agreement.

I would suggest to finance it.

Keep the money for car in separate account and invest it in tfsa (gic, self managed etf, or one of the roboadvisors - where a conservative portfolio should net you at least 2-3 percent so you will come out ahead).

Yes you save paying cash but it’s always better to keep cash in your hand for having flexibility down the road especially if the difference is a couple thousands of dollars over 5-6 years.

Just be disciplined and don’t waste the car money you set it out aside.