Paying cash for something you can finance cheaply is sometimes quite costly over the long term. If you buy a $120,000 boat and can finance it for 20 yrs at 5% it will cost you $190,000. If you invest $120,000 for 20 yrs and can earn 3% you will have $216,000 at the end of 20 yrs. If you could earn 5% you would have $318,000. Long and short of it is, people have to do what makes them the most comfortable. Making a blanket statement about financing verses paying cash makes being right very difficult.