<prompt> Human: I currently own a Mitsubishi Eclipse 2008 gt with 109,000 miles on the odo. I impulse bought this car at 18 and definitely regret it. Im currently underwater at about 5,600 left on loan at 13 apr. Im looking to buy a kia optima 2016 with just under 20,000 miles on the odo. Dealer is selling it at 16,450. With selling my car ill still owe 2000 bringing the total to 18450. My FICO score is around 750. Expenses Take home pay 2,800Rent 620Electric-50Phone 50Car payment 217 starting to pay 600 just to get rid of the damn loanInsurance 219Food 100Gas 40Internet 55I understand saving and just buying a cheaper older car however ideally Id like to buy a newer car if possible. However, Ill consider any options recommended. Assistant: Unless your current car is just failing you, the smarter financial move is to get it paid off and build an emergency fund before getting a more expensive car. Yes, the newer car with less miles will be nice to have. But, in the long run, financial security will be much nicer. Give up a little bit of today for a better tomorrow.Human: I have a 4000 emergency fund right now. My car runs fine but no records for maintenance and yeah Id rather take a car with lower miles so i can stay up to date on maintenance. Id be using most of my extra monthly cash to knock out the loan.  <response>: If I were you I would put 3,000 of your emergency fund towards the loan right now. Pay off the remainder of the loan over the next 3 months or so. Then focus on rebuilding a 6 month emergency fund. When thats done you can start saving for a down payment for a newer car, but really as long as your current car runs ok I wouldnt worry about replacing it. There are much better things you can do with your money besides putting it into a depreciating asset. Open a Roth IRA and start contributing to that instead. Its not sexy but in 10 years youll be glad you did. 