<prompt> Human: We are in the process of selling our house and buying another one. We already have 20 for a downpayment for the new house, and are planning to also add the proceeds of the sale of our old house into the new house as well.Now it has come up that my husbands car is having problems, and he would like to replace it. Both of our cars his, 11 years old; mine, 5 years old have been paid off for some time, so we do not currently have any car payments. The bank advised us not to open any new loans before we close on the new house, so anything we do with the car will wait until then. We currently have no other debt besides the mortgage. We wont be paying PMI either way because this is on top of our 20. We are considering two options:1- Continue with the plan of putting all of the proceeds of the sale of our old house into the new house. Finance the car with a new loan. Same house payment that we were expecting, plus a new car payment for the first few years.2- Set aside some money from the sale of the old house to pay for the car in cash, and put the remainder into the new house. Higher house payment, but no car payment.We could afford the payments on a car loan, but like the idea of only having mortgage debt. The total payment would be lower in option 2 for the first few years the life of the car loan, but would then continue to be higher for the life of the mortgage, leading to an overall higher amount paid over time. This makes me think that while option 2 feels like the better choice, maybe option 1 actually is better in the long run.What do you think? Or is there another option that I havent considered?  <response>: It sounds like youve already crunched the numbers and found the best option. You could fix your current car, but youre clearly in a place where you can afford a new one and sometimes the quality of life boost is worth it. Is ramen cheaper? Sure, but thats no way to live. Good job on not paying PMI and enjoy your new house and cars. Hope they last you a decade and some. 