If you make payments to yourself instead of to a finance company, you'll make money instead of pay money. Unless you really are in a bind and NEED something you don't have cash for, it's better to save for it and lump sum it. You can put money away in your bank account, just like making payments to a finance company. The only difference is that interest is paid to you instead of you paying interest to someone else. It will take less time to pay for the purchase if interest is compounded to your account instead of a finance company's account. You can also drive a harder bargain if you pay cash. Salesmen can pull tricks to get a payment you like, but you might be making that payment for several years. If you have cash, you can get bottom dollar pricing. Even with 0% finance options, there are usually cash discounts because they have to figure in the market rate of return. There is no free money. Also, some 0% plans have early payoff penalties. Watch out for fine print.