My mother pays cash for her car and I can see the advantages. Eg. If we buy a car on loan of 100K. After paying the car, we would have already paid 136K for the car and if the value of the car 30K after 9 years. It means the owner lost 106K if he decides to sell the car. But if it was paid cash then he loses 70K for the car. Imagine if the car is a supercar, what will the loses be? It means that if you are taking a loan, then the usage of the car is RM981 per month while if you have the means to pay cash you spend RM648 per month.

If you are a businessman and if the cash can generate more income than it is wiser to use the funds for your business. But most businesses have their own pool of finance and car is more of a personal matter. How sure are you that the funds can generate more income than the interest rate that financial instituitions charges? It all comes to whether you have the extra funds and if it is just lying in the bank then you save more for a car usage if you pay cash. Who wants to borrow when they can afford?