NEVER EVER EVER finance a car unless it's 0.0% over a short term.
I haven't financed a car in 30 years. I drive 2-3 year old SUV's that come off lease and have less than 36,000 miles on 'em. I always pay cash.
BTW: Any salesperson or finance guy at a dealership who says "a car is the second biggest investment you'll make in your life" is a complete moron and should be walked away from. A car is not an "investment" it's a depreciating asset that loses value quickly. Investments (good ones) don't do that.
I don’t quite agree with everything you said. Certainly 0.0 financing is optimal. But sometimes the dealer will come down on the final sales price if you finance at a higher rate.
When you’re in the finance office and the finance manager is pushing garbage such as optional warranties and gap insurance and junk like that it’s hard to keep your head. But sometimes it’s better to take that 1.9% financing if the dealer is willing to knock an extra couple of thousand off the best price.
And then if they’ll come down another $5000 based on a 5% interest rate, take it. And then as you say refinance the balance right away with the credit union. Or just pay it off if you have the cash.