If you buy it outright you own an asset and your money wasn't doing anything in the bank. But it's a depreciating asset. Do not borrow to buy a car unless you can borrow at 0% APR or the overall cost of the finance will be considerably less than the discount you can get on the car. This applies to HP finance and to PCPs. If personally leasing instead, work out the total cost of doing that v/s the best deal you can get on an HP, PCP or as a cash purchase. Use the Guaranteed Future Value of the PCP to estimate the value of your car in three or four years time, whatever the length of the agreement.