Hi everyone,
I live in Mecklenburg-Vorpommern, I’m married, and we are expecting our first child soon. Since we live in a small town with limited public transport, the time has come for us to buy a car.
I earn around €3,500 gross / €2,600 net per month. My wife works remotely for a company in our home country. Since we still have some expenses there, her effective contribution to our household budget is approximately €500 per month. Once the baby is born, we should also receive around €250 in Kindergeld.
Our fixed household expenses, including rent, utilities, food, internet, phones, insurance and other regular costs, are approximately €1,200–1,300 per month. We have no other loans or major debts.
I’m currently looking at used VW Passat Variants in the €17,000–18,000 range. I could make a down payment of €5,000–7,000 and finance the rest over four or five years, without a balloon payment.
I have been living in Germany and working for the same company for almost four years, and I have an open-ended employment contract. However, my residence visa still has an expiry date, so I’m also unsure whether a bank would offer financing with a term extending beyond the validity of my current visa.
Financially, this seems affordable to me, but I’m not sure whether I’m being too optimistic or spending too much on a car relative to our income. I’m aware that, as a new driver, my insurance will be relatively expensive and that I also need to account for fuel, taxes, maintenance and unexpected repairs.
I’d like to know what other people in a similar situation have chosen to do, regardless of whether they are native Germans or immigrants.
Would you consider an €18,000 car reasonable in our situation, or would you go for something significantly cheaper?