<prompt> Human: Is there a smarter way to use this money and get the car? Should I pay cash, finance or is there a more beneficial option? Ive never had a lump sum this large before.  <response>: Were you planning on a second car anyway? If you werent then realize having a second car will add some expenses insurance, gas, repairs etc. It might make sense to buy a car for 16 or 17K and keep the rest toward those expenses.If you were going to buy a car anyway then its a different decision. I prefer to pay cash for cars - but make monthly payments to myself. That way when its time to replace the car I can do it again for cash. This way I can earn interest on my money instead of pay interest OK these days you dont earn much I grant you. Plus you have more flexibility in the timing of when you replace the car. And if you get in an accident, youre not going to be upside down on the loan. If you pay off 10K in debt then put 5K towards the car youll end up in more debt if its a 20K car. It might make sense depending on the interest rates of your 10K loan and the car loan. This might be a case where the 0 loans make sense. 