<prompt> Human: My wife and I no kids are needing a second car. We have about 4k left to pay on our car 6 months left on a 3 year loan, but no other debt. The car that we are looking to purchase is 33k. We make about 185k, and have about 120k in savingsliquidity. According to credit.com, my credit score is 812.With our current car, we had taken a loan both to beef up our credit paymenthistory, and since we got a low interest rate, and have been able to instead put that money into funds that have returned more than the interest has cost us.So that brings us to the current upcoming purchase. We could get a loan again, which would leave us with more cash for a down payment on a house, but I worry about the amount that the loan could increase the interest rate on a mortgage.Is it likely better for us to outright purchase the car, or take a loan?  <response>: Buying a 32,000 car on a loan would be about 600month in car payments. 7,200 debt 185,000 income 4 DTI ratio? Theyd probably have a nice chuckle if you mentioned your concern over a car payment.Now, youd have to stay under the 30 DTI, so you could get at most a mortgage with 4,000month payments. Should be enough for a 700,000 dwelling. If youre on the cusp of this, well, you cant quite afford it either way, the 4 DTI shift wont make a difference. If you dont plan on a mortgage as high as 4,000month, wont be an issue. An extra 30,000 in down payment would lower your mortgage payment by a few percent 200month Id estimate and maybe eliminate the need for PMI. So that should also be factored.This is purely from a what will the bank care about perspective. I dont know your local RE market, or if 700k where you live is starter home tier, or 6-bedroom, 10,000 sq. ft. mansion tier. 