House vs. Car: Which Should You Buy First?

When we have been working for a while, we may have some savings or leftover money each month after covering necessary expenses. If this amount is still available after saving, the temptation arises to buy a house or a new car. So, house vs. car: which should you buy first? Let's consider some opinions to help with your decision.

For those considering buying a car first:
— First, we need to understand that a car is an asset that depreciates over time. This means that as soon as you drive a new car off the showroom floor, its value decreases immediately. Very few people buy cars with cash, so you will likely have a financial obligation to pay off the car loan for at least 5–6 years. Additionally, you will need to pay for fuel, maintenance, and insurance each year.

With this understanding, you can decide whether to buy a car before a house. For those thinking about buying a car, here are some reasons to consider:

♦ Your workplace is far away and not accessible by public transport
In this case, if you calculate the commuting costs without a personal vehicle and find it more expensive than driving, buying a car makes sense.

♦ Your job requires you to use a car
For example, if you work in sales and need to meet clients, not having a car would be inconvenient. Or if your job requires frequent travel to visit branches as instructed by your boss, having a car is necessary. If your company provides a vehicle, that's convenient, but if not, there’s a valid reason to buy a new car.

♦ You need a vehicle for transporting goods
If you run a business and need a vehicle for transporting goods, this is also a valid reason. If it’s truly necessary, getting a car is better for transporting items whenever and wherever you need.

♦ You genuinely want it
If you really want a car, you don’t need to justify it. As long as you’re not in financial distress, have a down payment without borrowing from anyone, and can afford the monthly payments without affecting your daily expenses, then go ahead and buy that new car. Just be responsible, as having your car repossessed would not be a pleasant situation.

For those considering buying a house first:
— A house is a long-term investment. Many people buy homes in less desirable locations, but over the years, those areas can develop, increasing land value and home prices. Even purchasing a condominium in a prime location near a subway station has a high potential for price appreciation, unlike cars, which only depreciate over time. Therefore, buying a house is undoubtedly a good decision.