I believe this is because of the weirdness of my Motorla phone's setup. Here's what they did. The phone's internal storage was split. The original 8gb was partitioned into 3gb for the phone's system and everything else (app data etc) and 5gb for everything else (downloads, music etc) . The problem is that it labels the 5gb partition as sdcard even though it is part of the internal storage...

 Spotify ignores my external card which has 32gb free since it probably already prefers the 5gb over the 3gb...  I don't know how to fix this. It is not troubling me yet since I am a relatively new user with no downloads or offline syncs. But having the 32gb card and not using it is a waste.

Tried installing the older version and made it target the external card then updating it didn't work. Upping the download quality only made it prefer the 5gb partition over the 3gb one which isn't exactly the goal...

I am on Kitkat by the way... not sure if that is a problem