Get a loan or pay cash?
Sometimes a person has enough liquid cash in his or her bank account, but will still be interested in taking a loan to improve their credit history (which lenders will check for future loans) or for tax benefit.
The final decision depends on the kind of the asset being purchased. For a depreciating asset like a car , vehicle, home appliance, the buyer is paying interest on an asset whose values is decreasing over a period of time. If instead the asset in paid in cash , and the interest amount is invested, the buyer earns enough to cover the depreciation.