House or car special repayment at the end of the year

Hello everyone,

In December 2017, we took out a loan for our house amounting to 340,000 euros. Repayment began in June 2018. Interest rate 1.91 percent. 5 percent special repayment possible per year. Term 10 years.

In February 2019, we took out a consumer loan for a new car amounting to 25,000 euros. Interest rate 0.69 percent, term 4 years. Special repayment possible at any time.

We are now considering which loan to make a special repayment on at the end of the year (approx. 10,000 to 14,000). On paper, it makes the most sense to repay the house loan. However, we are planning to have a child, so the then faster disappearing rate of approx. 528 euros for the car would be more flexibly usable. Besides, there is a good feeling in having to service only one loan.

How would you decide?

Comparing the interest rates makes no sense because the car would certainly have been cheaper without financing. It would have been sensible to buy the car at the end of 2019 for 10k-14k and pay in cash.

I would rather pay off the car. It is by far the more short-lived consumer good, and I would also aim to eliminate the car payment. The money is then freely available, also for special repayments on the house.

Comparing the interest rates doesn't make sense since the car would certainly have been cheaper without financing. It would have been more sensible to buy the car at the end of 2019 for 10k-14k and pay in cash

The car is already purchased and the loan is independent of the car, not a tied deal, financed separately. We always set aside money for the special repayment until the end of the year, so it was not available at the beginning of 2019.

I would rather pay off the car. It is by far the more short-lived consumer good, and I would also aim to eliminate the car payment. The money is then freely available, also for special repayment on the house.

The special repayment for the house is limited to a maximum of 14,500 euros. 50,000 euros of the financing is through KfW. Therefore, the money is less for the special repayment of the house, but can be saved / used for the expenses of a child. However, the interest advantage of the special repayment on the house is not insignificant over the 10 years. We are torn back and forth...

First of all, clearly pay off where the highest costs are --> house. The disadvantage is that your liquidity does not improve through the annuity. Do you urgently need cash available in 4 years? If yes, for what?