<prompt> Human: I need a new car. My paid for truck is about to die. I am anticipating around 500month payment for the car I want. How would you approach this situation with the following information?Income - 130KyrMortgage-1400mo. Wifes car-300mo, 9000 remaining, 2 interest. Student loans-700mo, 108k remaining. Lowes cc- 230mo, 1400 remaining, 0 interest. Personal loan, 200mo, 1500 remaining, 0 interest. Medical bills, 40mo, 200 remaining, 0 interest. With the utilitiesfood and stuff, our expenses are about 5000mo. We are also saving 1000mo with a balance of around 10k. I was thinking of paying off the personal loan, lowes cc, and medical bills out of savings but Im not sure if I should just keep them and put down a larger down payment instead. Assistant: Are you saying you have 10k saved? How much is the car? How much of a down payment were you planning on putting down? How long of a loan were you planning on taking out? If you have two months of savings at the moment I dont think putting a decent chunk of that down on a vehicle which will reduce your safety net and decrease future savings is a wise choice to make. I would suggest looking at a used car that costs a fair amount less. Assuming you and you wife are both working, if one of you were to lose your job, in less than two months youd be in trouble. If only one of you works, youd be screwed very quickly. Human: Yes, we have 10k in savings. However, it is growing pretty quickly at 1000mo. The car I would like to get is around 40k. I was planning on putting 5-7k down with my bonus I get at the first of the year. Thinking of financing for 60 mos at around 2.0  <response>: The people who can afford 40k cars are the people who can pay for them in cash. You cant do that. 