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It depends on how valuable you consider your credit to be. If you pay off the car, at least you'll be following through on the promise you made when you financed the car. Getting a little behind on a debt isn't nearly as bad as writing it off. Recognize too, that after they repo the car, it will be auctioned, and that probably won't be enough to pay the remainder of the debt. The lending institution will then send you a bill for what's left. You still owe that and now you don't have a car. If you write off that part of the debt or otherwise refuse to pay it, you probably won't be given many options when you try to buy your NEXT car.

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