LPT: Generally, a car is unaffordable to you if you have to finance it.

Obviously apply all caveats and understand that this is a generality.

According to pretty much all personal finance wisdom, if you don’t have the cash to pay out for the entire cost of the car, it’s not affordable to you.

But if I can get a lower interest rate then it’s better for me to finance!

Yes, absolutely! If you have the money for that car available, and it’s saved/invested and earning more than the interest cost of the payment, then it might make sense for you to take payments instead of buying it outright.

Though you still have to be able to cash flow the car payments.

Cars are a common way for people to make massive financial missteps, so be careful and make sure you’re staying in budget and not going underwater.