If you borrow the money, your total payments will be
(30) times ($122) = $3,660
If you pay cash, the car will cost you less than that.
How much less $
(3,660) minus (2,695) = $965 less.
If you decide to make payments for the next 2-1/2 years,
you'll pay $965 for the privilege of not paying yet.
And, if the car dies during that 2-1/2 years, and you totally
junk it, you'll still have to keep making the payments.
In the loan business, this is called "paying for a dead horse".
Borrowing money and making payments is always a bad deal.
If you can possibly pay cash for what you want, then pay cash.
I would even go farther than that, and say something that will
shock you:
==> If it's food, clothing, transportation, or a place to live, then
you need to go ahead and borrow to pay for it.
==> If it's NOT one of those things and you can't pay cash for it now,
then you can get along just fine without it, and that's exactly what
you should do until you can buy it for cash.
