I am going to be the lone dissenter here ... but DO keep your financial head on, at least a little.
I don't know anything about your situation - how old you are or how much cash you have to splash, but investing now (in a house) is likely to make you money in the long run. Spending money on cars is going to lose you money in the long run (probably.)
Given that you already have the car, and it is not worth as much as you have spent on it (they never are, are they?) the situation is a bit different, but now (at 32), I can say that I have no regrets at spending some long time driving naff cars and putting money into mortgages. Boring? Yes. Difficult? Yes, when friends are going around in significantly nicer wheels than I have. Depressing? Yes - guess how I spent the millennium (Dec 31st 1999/2000)? In a Sainsburys car park, trying desperately to change the ignition system on my knackered old Golf by torchlight so I could get to a party ...
However this financial scroogeness was worth it in the long run.
Think about yourself 10 years down the line. What will that person want you to do now?
(I know this is probably not what you want to hear.)
Oli.
Edited 'cos I got the date wrong!