I started paying cash when I figured out I was screwing myself buying a new car on credit no matter how it was financed. Dang thing depreciates in value the minute you drive it off the lot. I figured I'm much better off letting someone else take the depreciation hit on a brand new car. I'll take my time and look for a good used one that's maybe 3~4 years old and pay cash. I'll drive it for maybe 5~6 years and still find somebody willing to buy it from me. It all depends how you take care of it.
If you buy carefully, you don't have to keep the car 6 - 6 years. I have a friend who buys a 3 year old car every year and sells it one year to eighteen months later. He has never sold a car for more than $500 less than he paid for it and has sold some at a profit.
I take that idea to an extreme.. Out of my last several cars (all nice and only several years old when I purchased them) 2 had bad engines (one was catastrophic valve/piston entanglement) one was a sports car, stolen new off a dealers lot and sunk in the river and my next one will likely have a bad transmission. (which could cost anyone else $3500.00 to repair) I almost bought a Buick Grand National that had an engine compartment fire also, about a decade ago. Would have saved big on that one.
I usually pay cash, but I got a personal loan for one..
It's the only way to buy a car, imo.. and to look at any of them, you would never know they were basket cases at one point.