Should I buy a new car if I only have $16,000 in my savings account?

I don’t want to take out a loan for it. I would like to buy a new car for myself (as my current car is too small and not very safe), but should I save more first? I would get a second-hand model. To give you some context, I’m 24 years old and I live out of home with a friend - split between us we pay $700 rent each... show more I don’t want to take out a loan for it. I would like to buy a new car for myself (as my current car is too small and not very safe), but should I save more first? I would get a second-hand model. To give you some context, I’m 24 years old and I live out of home with a friend - split between us we pay $700 rent each month. I am a full-time student and I work part time (earning $2,500 monthly, and I also receive fortnightly government youth payments of $400 every fortnight).
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