Over spending on car?

Trying to figure out if I should swap vehicles due to disuse.

Vehicle in question: 2018 Audi A4 Quattro Prestige, 19k mi. KBB private party is 40k, 36k trade in. I owe 26k on it.

22 years old: Finishing BAS and then MS (both paid for by employer)

Income: 60k post tax, could raise up to ~82k if I wanted to work full time, which I do not right now due to school.

Debt: 60k – Auto loan @ 3.99%, the rest in student loans at 5.5% mixed between sub and unsub federal loans. Credit cards paid off monthly.

Liquid Assets: 5k

Fixed Assets: 53k

Receivables: 20k; 10k of which is payable in 2 weeks.

Monthly expenses, including the car are about 2600.


I can easily pay for the car, I’m just not sure if I should be. It has appreciated by about 10k since I bought it last year. I made a pros and cons list


Pros to keeping:

-Reliable, low mileage, honestly a blast to drive (I love my little car lol), decent mileage, major depreciation schedule has passed. Only drive about 300 mi, which keeps depreciation due to mileage very low.

Cons to keeping:

17% of monthly income, which I could drop to about 5-10% if I swapped into something cheaper. I had thought about a mid 2010s A3 or A6 TDI. That would run 15-25k. Low use in relation to expense level.


For the love of god, please do not tell me to buy a 99 civic.