Aren't you guys looking to get out of your condo though? I thought I remember you saying you guys were also still in a condo.
In order to get approved for the loan I need to get out of the condo and into a house, I have to pay off the G8. I wouldn't think you'd want a new car payment if you're looking to get out of a condo. It blows having to pay it all off now, but I had less than a year left on it anyway. But there was a $40k difference in the loan if I didn't pay it off. $40k can get a bit more house.
For me, if it came between a new car, and a bigger place...I'd take the bigger place.
/old fart rant off