There is an old standard about what to do when you find yourself in a bad financial position: “If it ever comes down to either/or, make your car payment or repair before your mortgage, because you can live in your car, but you can’t drive your house to work.” That’s not bad advice if your circumstances change suddenly, but I'll take it a step farther... Don’t accrue debt in the first place. Don’t take on an expensive car (payment) because you think you deserve it, or want to impress someone else. Save your pennies if you must, but PAY for your car rather than have a car payment. There is nothing wrong with saving toward a goal. That’s the smart way to do it.