Cash Reserves for Future Down payment vs. for Vehicle

[Nathan Unger]

We are needing to purchase a vehicle and would also like to purchase a home and/or rental property in the next 18 months (especially if the market dips). I have had several people say take your cash reserves and purchase the vehicle outright and then replenish your reserves. However, if we can get a automobile loan for 3.99% (ideally 2% or less) or less and keep the cash on hand for down payment of a property what would be the better option? Cash down on the vehicle or save it, take out an auto loan, and keep it for a down payment?