Our combined Income is $4,000. In reality we get to keep $1,500 a month after all the bills and expenses; But that just started happening recently which is why I don't have a down pmnt saved. The reason why I said I can afford 1,100 in debts its cause I want to make sure the other $400 I get to keep on a savings account.
I have a second car which I use as a daily driver, a 2002 Kia; I can private sell it or trade. I bought that car cash about 2 years ago, while my wife gets to keep the '08 cause she works a block away from home.
I was also considering buying a house rather than the new car. It's a much better investment IMO. I get your advice and I've been towards the "no-go" on the new Lancer, just needed a couple more advices; sometimes young people don't make the best decision of their lives you know.
Thanks for the advice! 
I was considering the '09 Ralliart which is a bit close to the Evo performance and tech-wise and I could get one for about $24K. But it was the fact of owning the higher-end trim plus a bunch other things we all male know of (leather, badassness, track racing, gullibility, insanity and love for power, etc...).
I know the aftermarket stuff was also a consideration but I kind of wasn't thinking of voiding the warranty on a 40K car u know what I mean. dvroberts, now that you mention the MMC (Mitsubishi Motors Credit) when I first got the Lancer back in January, Mitsu Credit didn't want business with me due to my credit history, that's why I went with CapitalOne Auto Financing.
And I've got crazy offers on good houses also down here in the miami/homestead area (built on 2006) that I really should consider!
Oh and 1111mel, thanks for making the mistake for me
Hello Jaz,
Your 1st priority needs to be improving your credit scores and refinancing that car loan, 20K @11.5% for 72 months means you're paying a ton of interest.
With as much free cash as you have, cram down that CapOne loan, Crap-One may have given you a loan tp get you started, but they are not competitive, I made the mistake of app'ingwith them to see what they'd offer this past summer to buy a new vehicle, they offered 9%, even BofA beat that with 6.4, FMC gave me 4.99
If you improve your credit scores over the next three to four months you should be able to cut that apr in half and since you've already paid over2K in interest (started payments in January ?) you need to refi for no more than 48-mo, prefereably 36, to cut down on the interest you pay.
A 15K refi loan @6.5% for 48-mo gives you the same payment you currently have at 11.5% but saves you 4+K on the interest.
New cars will not hold their value, real estate will (well, eventually One of my co-workers just bought a 4200sq ft new construction home outside Hampton Ga that's been sittng empty for the the past 18-months, the builder listed it initially at 399K, he closed on it for 215K,
Good luck,
I'm trying to be nicer online....
Ignore most of the advice you have gotten so far. A house is far more work and stress than a young couple needs right now. On top of that, if you heard the TARP hearings this morning you know we are no where near the "end" of this and prices of homes will continue to drop.
I might suggest a cheaper car but not because somebody was thinking cheaper (ie used). I'm thinking cheaper as in "90% of the performance for $10,000 less"
That would be -
It MSRP's for $27,000 or about $10,000 off what an EVO cost and according to many reviews its about 90% of the performance level of an EVO X. Its Turbocharged and AWD, just like an EVO X. No electronic diffs, Yaw Control, "Flappy Paddle Gear Box" and heavier Steel Suspension parts instead of lighter and more expensive aluminum is where the savings came from. Also a slightly more restrictive intake system.
Should be easier to get a loan for as well.
Good Luck...