<prompt> Human: Hello everyone, The obligatory long time lurker first time poster. Ive been thinking recently to trading my car in to get a luxury car and was wondering if I could get some advice. My current car is completely paid off and worth approximately 9000, where as the car I am looking to buy with tax would work out to be 23000.The thing is I am looking to buy a house soon and dont know if it would be the wisest idea to buy it. My salary is 54000 with raises coming shortly. I have 26000 in RRSPs which I would be using some of that for half a down payment on a house other half coming from my SO. 15000 in TFSAS and about 5000 in cash. I have no debts and my monthly expenditures are low 700mth. Btw Im 24 years old.The only reason Im hesitant is Ive never really owed money before and if I buy this car I would owe around 10000 and that seems scary to me. Also it would need to be my daily driver and driving it in the Canadian winters seems daunting because I havent owned something this nice before.Any advice would be welcomed.Edit: Thank you everyone for the advice and suggestions. I feel that the longer I wait the more money I can save and can reassess once my housing situation is solid and I know what my monthly expenses are.Assistant: You want to buy a car thats worth 50 of your annual salary? Thats a horrible idea, especially if you are planning to buy a house.Youll impress a girl by owning a house a lot more than a fancy car.Human: Yeah. I think you might be over extending yourself with the car budget. A 23K car on a 54K salary is definitely more than I would be comfortable with, especially as it is likely going to be pre owned vehicle. A pre owned luxury car is going to be fairly high maintenance, there is no debating that owned a German sedan for 8 years, and the cost of maintenance after the first 4-5 years was steep compared to Japanese and Korean cars.Regarding buying a house, in my opinion, if you cant make a 20 down payment, you shouldnt buy it. PMI is money you are purely throwing away. My advice, but a cheaper car and use the extra money to put down a larger down payment. Assistant: Yeah, thats what Ive been hestitant on right now as well. I have my half of the down payment on the house and Im just waiting for my girlfriend to get a full time jobshes fresh out of school but guaranteed starting salary 75000. I would have half the money for the car so essentially the loan would be for 10000 and I wouldnt be touching any of my other funds that would jeprodize my retirement savings and continued house savings.  <response>: Youre only 24, why not wait another few years where youre more stable, have a house, additional money saved up and pay for it in cash. Itll make it that much sweeter for you. Plus you should be making more within the next few years and can justify it more and the car you want will only decrease in value over the next few years making it that much more affordable. 