For most consumers, truly paying with cash in today's world is not really an option. However, if you have the money to put towards a vehicle you can benefit from the interest savings associated with a car loan.
Note, interest on a car loan typically is not tax deductible - unless a home equity line is used (personal use), or the vehicle qualifies as a business expense under the Internal Revenue Code. In addition, paying cash avoids the obvious - making monthly payments.
