Overhaulin' - Should I pay off my student loans or buy a new car?

Should I pay off my student loans or buy a new car?

I'm almost 40 and still have $35,000 to pay off my student loans. My car is 12 years old and barely running, I've never owned a new car. I happen to have $35,000 in cash saved up. My credit is bad (foreclosure etc.) no way I would get approved for a car loan and if I miraculously did would be at a crazy high rate. So... should I get a nice car to last me for the next 12+ years or use it to pay off my student loans?

Public Comments

pay off your loans! they matter more, if you pay the loan, the burden will be off of you :)
neither. get a four year old car and pay cash. lots cheaper on the insurance, too. Plan to run it until it dies in 8 years. save the rest. in this economy, you need to have a cash cushion in case everything goes to Hxxx in a handbasket, including your job.
if i was 40 with student loans bad credit and foreclosures etc...i would buy a gun and end all rather quickly....you should be ashamed of your poor decisions....
Your way of thinking is why your credit stinks and you are poor. Pay your debts first then save for a car. You are 40 and in 25 yrs will be retiring with nothing in the bank
You should do a bit of both. Buy a good used car for cash and pay all the rest except $5000 off the student loans. That $5000 is your emergency fund for now. With all future earnings, deduct enough to meet utility bills and living expenses, then pay half the remainder off your student loans and add the rest to your savings. When the student loans are clear, keep saving all your extra money. By the time this car wears out, you might have enough to buy new and still ample for emergencies and towards a pension some day.
If you buy a new car and they banks find out about it, they'll probably repo it. I suggest you speak with an attorney and see what your options are. Usually the first visit is free.
Pay off your loans or your student loans will pull you down. Spend 30k to pay off your student debts and use the 5k to buy a used car. There are plenty of Japanese cars for 5k that will last you a long time
Do NOT add debt to your situation. Trade your clunker in for a car that is about 5 years old, don't spend more than $7000/$8000 and pay cash. Take the rest of the money and throw it ALL at your student loans. If you can save up $35K then you can spend the next 6 months aggressively paying off what's left of your student loans. Then spend the next 6 months after that saving up an emergency fund that includes 3-6 months of living expenses. No more debt. Do not borrow money for school, car, or anything else. After you are debt free and have a fully funded emergency fund, then start saving up to buy a house down the road and/or start investing for your retirement. I would suggest the latter given your age and the recent foreclosure.