Opinions on my financing offer

Hello everyone,
I wanted to present to you in this post the financing offer for my future property and hope for many responses, whether criticism or approval.
A few key data points at the beginning.

Income:
Net household income per month is 5000 euros (He 4000€, She 1000€ as currently working part-time due to parental leave).
He receives 20,000€ annual bonus (gross) and a full 13th monthly salary in addition to the above-mentioned 4000€ net.

Expenses:
About 2000€/month for insurance, food, clothing, electricity, toiletries, TV, telephone etc.
1080€/month car financing (still running for 4 more years)
We currently live rent-free

Future property:
245,000€ purchase price
20,000€ additional costs
40,000€ renovations
=305,000€

Equity 50,000€

Bank offer:
255,000€ financing amount
1.28% fixed for 10 years
2,000€ monthly rate
3,000€ special repayment per year to be debt-free after 10 years.
Remaining debt without special repayments approx. 30,000€

The problem here is that the monthly fixed costs would consume our entire income (without bonus and Christmas pay).
And one thing beforehand, I will not sell the car (even though it would certainly be the smartest thing in this situation).

Now I have received a new offer from the bank, the proposal is now to somehow include the car in the home financing, it would look like this:

305,000€ financing amount (50,000€ for the car)
1.28% fixed for 10 years
2,000€ monthly rate
8,400€ special repayment per year to be debt-free after 10 years.
Remaining debt without special repayments approx. 80,000€

With this option, I would have about 1000€ monthly reserve since I no longer have to repay the car financing separately. To be debt-free after 10 years, the special repayments naturally have to be higher, but this should not be too problematic due to my annually paid bonus. And if there is a year in which no special repayments are made, then there remains a small manageable residual debt... not as bad as I find it.

What do you think of the second offer? What speaks against including the car in the home financing?

Thanks in advance, I look forward to constructive criticism, suggestions for changes, or the like.

I am surprised that the interest rate is 1.28% for both offers. I would have expected a higher interest rate for the second offer.

How is this supposed to work in practice? Are you terminating the vehicle loan and paying off the remaining debt + prepayment penalty to the "Kfz-Bank" from the funds of the construction loan? Or do you want to use the 50,000 euros of equity in this variant to continue paying off the car installments for another 4 years?

Hello Bieber0815,
correctly recognized and it is also not a typo. The interest rate remains at 1.28% even if the additional 50,000 euros are added on top.

And once again correctly recognized, I would receive the 50,000 euros paid out by the bank and use this amount to completely repay the car loan of the [KFZ-Bank].

I had forgotten, the interest rate of the car loan currently at the [KFZ-Bank] is 3.95%

I agree with Biber... The interest rate no longer matches the loan-to-value ratio.

I would choose a lower rate and aim to be debt-free after 15 years (with special repayments) or 20 years (without special repayments). You would also have to think about childcare costs. We pay 650 euros per month to the district for a nursery place, just as a ballpark figure.

I find it hard to believe that someone drives a 50k car and then buys a house in need of renovation for 245k. But okay :p

Why do you have such a hard time and don’t just fix it for 15 years? That way you avoid the "pressure" to have to make special repayments. In offer 2, the premium is planned to be fixed for 10 years. Yes, reasonable, but planned. From experience, you end up skimping on it and don’t make the special repayment. Especially with used properties, something new to renovate usually comes up.

Then there’s also the risk that the premium doesn’t come or only partially.

Just a thought