I do not understand why people take loans for a car. If you can afford $x00 a month for 5 years, for a car loan, put it in the bank instead. Earn interest, instead of paying interest. In 5 years buy a new car for cash and sell your old one, then start saving again.
Or--now here's a radical thought--if you can make MORE on your cash putting it away than it costs you for the loan, then it's insane NOT to take the loan.
My loan is 1.86%. The cost of that loan over its life is $1100. If I put that $25K into the bank (which I did), and it earns MORE than $1100 for me (which it has already), THAT'S why you take the loan.
In the meantime, that cash is there, ready to pay off the loan on demand should circumstances demand it.
Otherwise, if you pay cash, you save the $1100 interest over the life of the loan--but you lose out on the $5000 of interest you could make over the term of the loan.
Do the math. You would pay $5000 to save $1100?
Other People's Money. If you can use it, use it.