You're right in wanting to put that towards a house. Although the BMW may be a great deal relative to BMW prices, is it a deal to you? Look at how much the price can drop on cars. That tells you all you need to know. As soon as a car drives off the lot, it depreciates in value... and a $15,000 car will get you where you need to go just as well as a $50,000 car. Babies are expensive and as a soon to be father, it's much better to spend your money securing a home and not locking yourself into high car payments when you have a baby on the way. If you were a car nut and didn't have kids on the way, sure, but with a baby on the way, keep it in your pocket because you'll need it.