If I have cash, I pay cash. The Bible tells us that it is not a good idea to be in debt to each other. If we think about it, there are lots of good reasons for this. As many others have mentioned already, you never know what might come up in the next few months. I only finance if something is COMPLETELY necessary, and I do not have the cash to pay for it. Then, I try to make a sensible decision about what I am financing. It is easy to go a little over the top - i.e. "If I have to finance it anyway, I might as well get the front loader. After all there is free financing...", or buy any vehicle that you like just because you are "approved". Just because you are approved, doesn't mean that they payment will fit into your budget and lifestyle.
This reminds me of a family I know that used the Discover cash back bonus system. They purchased EVERYTHING on their Discover card, but instantly wrote the amount down in the checkbook like it was already spent. Then at the end of the month, they would add them all up, make sure it matched the Discover statement and make the payment. As far as I know, this always worked for them, and they didn't have any problems. I was tempted to do this also, but decided not to take the risk. Probably for the better...I ended up getting layed off from my job, went back to school, etc. It would have been really hard to make that next whole payment, and I very easily could have ended up on a bad road to just charging more and more on it because it was easy.
Hope it all works out for you, and that you are able to pay it off before you have to pay interest! :)
