Speedguy, Wilwren, Bonneville_blue, and Turtle_SSE are correct! Pay down your debt first, Buy a house second, Buy a Bonneville of your choice third.
You will reduce the duration of your loan payment if you make double payments on you loan(*). Most people think "well I can't afford to pay $800 payments every month. What they fail to realize is that they can get an amortization schedule from there lender which shows all of their future payments broken down by due date, principle amount, interest amount, and remaining balance after making a payment. These generally cost $10 USD and in some cases are provided free from your lender. Order one. Then, when you make your first payment (lets assume that your payments are $400 per month), you would go to your copy of the amortization schedule and you add your first payment of $400 to the PRINCIPLE portion of your second month'* payment (assume that it is $100). Write your payment out for $500 and you just saved $300. Not only did you save $300, you just shortened the duration of your loan by one month! Do this every month paying months 1 and 2 the first month (highlight the payments you made on your copy of the amortization schedule so you know which payments you have made), then pay months 3 and 4 on the second month (highlight those on your schedule) etc. The key to this is never be late for a payment, always make payments every month in at least the amount of the minimum monthly amount due (in this example the $400), all extra payments should be made in the full amount of the next unpaid principle amount (which will increase as the loan is paid off), and finally, explicitly indicate what the extra amount of the payment is for, in the US, writing "extra payment to go to principle only" in the information line of your check is sufficient. If you can do this consistantly, you will save yourself thousands of dollars in interest payments, and you will cut your 5-year loan down to a 2 1/2 year loan.
Once you have paid off your loan(*) in this manner, you can then purchase a house. When the lending agency sees your 'excellent' credit rating, you will be in a better buying position for your homeowners loan.
After a year in you house you will have accomplished three things. You will have eliminated debt, purchased a larger (or at least a more expensive) house (without the student loan debt you will have more debt-free income to go toward your house payment), and finally, you will have established excellent credit that will enable you to purchase the first RWD Bonneville SSEi in Ottawa (or on this forum)! This will have taken you a mere 3 1/2 years to do.
Now as far as the Kia is concerned. If that is what your folks are willing to spring for, go ahead. The Kia had the Mazda drivetrain when they first came out. The Mazda engine (if Kia is still using them) is a good, reliable engine. The warrenty will cover any breakdowns you may experience so you shouldn't be afraid of out of pocket expenses. finally, it is more economical than many other cars (depending on engine and body size), not to mention the fact that you will have no payments save insurance, fuel, maintenance.
To me, this is a no brainer. We all know the old addage "Don't look a gift horse in the mouth"? Let your folks do this for you, put up with it for a while. In 3 1/2 years or so, buy the 'thorough bread', until then use the 'mule'.
BTW, I am an accountant. I know what I am talking about when it comes to the financial sense of this deal. I know in an ealier post you said that you had already made up your mind to hold on to the gutless and the poncho, but I would strongly advise you to reconsider. It is always easier to spend someone elses money, a lot harder to convince someone to save there own!
Good luck in whatever you decide.
Retired Moderator, The Bonneville Club www.bonnevilleclub.com
RIP Oldsmobile, April 29
1995 Bonneville SE Supercharged (Stock)
Current Mods: Dirty GYM Sock air freshener.