F&I Tool
Cash vs. Financing — Hypothetical Illustration
This worksheet compares (1) paying cash for a vehicle versus (2) financing the vehicle while retaining an equal amount of cash in a hypothetical savings or investment account. All figures are hypothetical projections based on user-entered assumptions only. This is not investment, tax, or legal advice — and is not a recommendation to finance or invest.
Usually same as loan amount — the cash they would have spent.
Enter any assumed rate — this is illustrative only, not guaranteed, and not a product recommendation.
- The loan side assumes the customer finances the full entered amount at the stated rate with no down payment or fees.
- The hypothetical cash side assumes the full retained amount is placed in a single account earning the stated annual rate, compounded monthly, with no withdrawals during the period.
- Monthly vehicle payments are assumed to come from other household cash flow — the model does not reduce the invested principal to cover payments.
- Excluded from both sides: income taxes on investment earnings, fees, insurance, early-withdrawal penalties, market volatility, inflation, and opportunity cost of illiquidity.
- Rates entered are assumed gross annual rates — not after-tax, not guaranteed, and not representative of any specific product or lender.
National CD Rate Reference
Current best-available and national average CD rates by term. Updated daily from Bankrate and FDIC data. Always verify directly with the institution before quoting any rate.
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ⓘ These rates are provided as a reference for the F&I manager when entering an assumed return in the calculator above. They are not a recommendation to purchase any CD or financial product. Customers should confirm current rates and terms directly with their chosen institution. Best available rates sourced from Bankrate.com; FDIC averages from fdic.gov.