Doesn't really make sense to me, but whatever. I guess there are other costs with a loan (necessary to have full coverage) and risks (risk of major failures that aren't covered by insurance when you still have an amount owing), but there are risks with paying cash too. IMO, with these low interest rates, it's best to shop like you're spending cash, but get a loan. If you've got the extra cash, put it in an interest bearing account, CD, etc. and make some money off that cash.