Personally I'd put that money in a high yeild CD, but thats just me. Out of the three options a set of coilovers sounds good.

 

bank the money and be smart just in case something happens to your car and you never know that money might come usefull sometime...

 

You should first figure out what that extra $1600 is going to cost you with interest over the 30+ years, or however long the term of your student loan will be after you graduate. I promise you will **** your pants after you do the math. A CD or long term investment is wise. Then when its time to pay up, you can make a nice principle payment with the interest you earned. Youd be putting borrowed money that youll pay interest on into your CAR. Cars can only depreciate in value (if not a restored historical vehicle.) It just makes no sense. But its up to you.
In other words, I totally agree with Ace and all the other people who are trying to give you smart advice.

 

i think there is a misunderstanding guys i did not get a loan, i recieved financial aid from the government a.k.a. (Being poor). i do not need to pay anyone back.

 

i say spend the money and drop the car. i got my car cause i took out a student loan, and i kno that if i wait the full 30 years to pay it of this car would cost close to $30000 for a 8 year old car, but i have no plans to take that long to pay it off. i blew all my extra money on insurance for a year just so i can work on payin of the loan quicker and mod my car here and there. ive learned to live life to the fullest and enjoy it every chance you get, so y put the money away if you have it, enjoy it cause you never know when its ur time.