I'm sure I will get flamed on this but here is my .02 cents worth.
First, I you have any high interest credit card debt pay it off. Second, any other debt that can be reduced do it next. If you have children open a 529 college fund. What you have left over spend as you will. It is not everyday that you get 37k. Spend it wisely.

 

He's already stated that he's financially stable (w/out the $37K) and that what's left over from the inheritance after the wife's Passat will go strictly to the Z.

 

If I was going to put $11k in a Z, I'd buy a big suitcase for it so it didn't fly out the windows.