Should I buy a house or a car first?
Last updated: 6 Aug 2025
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"I want a car, I want a house." It wouldn't be wrong to say that few people can afford to buy a house and a car at the same time. This is especially true for recent graduates who are just starting out, with a relatively low income. Or if you happen to win the lottery or invest a lump sum, if you want both a house and a car, you'll need to decide whether to buy a house or a car first. How do you prioritize these two? Here are three tips for deciding whether to buy a house or a car.
Consider your needs
The first thing to consider is your needs. There's no set answer: should you buy a house before a car or a car before a house? Everyone's needs are different.
For example, if you rent a house or a condo, buying your own house or condo may be more important. The money you used to pay for rent will become your monthly mortgage, which will allow you to own your own property in the future.
Generally, the value of a house or condo tends to increase. If you no longer live in the house or condo in the future, such as when you move to a new job, get married, and start a family and want to buy a house instead of a condo, you can sell it. Alternatively, if the condo is in a good location, You can also rent it out to generate additional income.
For those who live in the same house as their parents or relatives, but the house is far from work, where public transportation is inconvenient, or where multiple transportation options are required to get to work, buying a car may be more suitable. This provides convenience and saves time on commuting. For women, however, who often have to walk down a side street when returning home in the evening or at night, buying a car can also increase safety.
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Calculate Your Affordability
Once you've decided whether to buy a house or a car first, the key is your ability to repay the debt. This will help you determine the approximate price you can afford.
Generally, when applying for a loan from a bank or financial institution, your monthly debt should not exceed 40-60% of your income. The proportion of your debt that you can afford depends on your monthly income. The higher your income, the higher your monthly debt ratio.
It is recommended that your monthly debt repayment should not exceed 30% of your income, as excessively high monthly debt ratios can lead to financial problems in the future.
For example, consider buying a house first. If your monthly income is 30,000 baht, and the bank allows you to repay no more than 40% of your monthly debt, this means:
Your total debt repayment is 40% x 30,000 = 12,000 baht.
If you choose a repayment period of approximately 20 years, you can request a loan from the bank of approximately 1.3 million baht. However, if you choose to purchase a car first, with a price of approximately 600,000 baht over a 5-year repayment period, your monthly payments will be approximately 11,000-12,000 baht.
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Prepare a down payment
Prepare a down payment
Whether you're buying a house or a car, applying for a bank loan requires a lump sum down payment. Typically, a home loan requires a down payment of approximately 20% of the home value, or a car loan requires a down payment of approximately 25%. Therefore, before taking on a large debt, You should first assess your down payment availability.
For example, if you're buying a 2 million baht house, you should have a down payment of approximately 400,000 baht. If you plan to buy a house within the next two years, unless you win the lottery or make a significant investment profit, you'll need to save 16,000-17,000 baht per month.
However, if your monthly savings exceed your savings capacity, you may need to postpone your loan application goal. For example, postpone your home loan application from two years to three years to allow more time to save for the down payment. Alternatively, you may need to reduce your monthly savings, such as buying a smaller house from 2 million baht to 1.5 million baht, to keep your monthly savings within your savings capacity.
___________________________________________
However, before deciding to purchase an asset such as a house or car, the first important consideration is your necessity and readiness. Buying a house or car involves commitments that require repayment over several years. Therefore, you must carefully consider whether you have enough down payment and the installment payments to prevent future financial problems.
___________________________________________
Source: DD Property
Consider your needs
The first thing to consider is your needs. There's no set answer: should you buy a house before a car or a car before a house? Everyone's needs are different.
For example, if you rent a house or a condo, buying your own house or condo may be more important. The money you used to pay for rent will become your monthly mortgage, which will allow you to own your own property in the future.
Generally, the value of a house or condo tends to increase. If you no longer live in the house or condo in the future, such as when you move to a new job, get married, and start a family and want to buy a house instead of a condo, you can sell it. Alternatively, if the condo is in a good location, You can also rent it out to generate additional income.
For those who live in the same house as their parents or relatives, but the house is far from work, where public transportation is inconvenient, or where multiple transportation options are required to get to work, buying a car may be more suitable. This provides convenience and saves time on commuting. For women, however, who often have to walk down a side street when returning home in the evening or at night, buying a car can also increase safety.
___________________________________________
Calculate Your Affordability
Once you've decided whether to buy a house or a car first, the key is your ability to repay the debt. This will help you determine the approximate price you can afford.
Generally, when applying for a loan from a bank or financial institution, your monthly debt should not exceed 40-60% of your income. The proportion of your debt that you can afford depends on your monthly income. The higher your income, the higher your monthly debt ratio.
It is recommended that your monthly debt repayment should not exceed 30% of your income, as excessively high monthly debt ratios can lead to financial problems in the future.
For example, consider buying a house first. If your monthly income is 30,000 baht, and the bank allows you to repay no more than 40% of your monthly debt, this means:
Your total debt repayment is 40% x 30,000 = 12,000 baht.
If you choose a repayment period of approximately 20 years, you can request a loan from the bank of approximately 1.3 million baht. However, if you choose to purchase a car first, with a price of approximately 600,000 baht over a 5-year repayment period, your monthly payments will be approximately 11,000-12,000 baht.
___________________________________________
Prepare a down payment
Prepare a down payment
Whether you're buying a house or a car, applying for a bank loan requires a lump sum down payment. Typically, a home loan requires a down payment of approximately 20% of the home value, or a car loan requires a down payment of approximately 25%. Therefore, before taking on a large debt, You should first assess your down payment availability.
For example, if you're buying a 2 million baht house, you should have a down payment of approximately 400,000 baht. If you plan to buy a house within the next two years, unless you win the lottery or make a significant investment profit, you'll need to save 16,000-17,000 baht per month.
However, if your monthly savings exceed your savings capacity, you may need to postpone your loan application goal. For example, postpone your home loan application from two years to three years to allow more time to save for the down payment. Alternatively, you may need to reduce your monthly savings, such as buying a smaller house from 2 million baht to 1.5 million baht, to keep your monthly savings within your savings capacity.
___________________________________________
However, before deciding to purchase an asset such as a house or car, the first important consideration is your necessity and readiness. Buying a house or car involves commitments that require repayment over several years. Therefore, you must carefully consider whether you have enough down payment and the installment payments to prevent future financial problems.
___________________________________________
Source: DD Property
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