Pay off a €20,000 car loan or use it as equity?

Alternative: Sell the car? Use the proceeds to pay off the loan? And buy a cheaper one? Then there might also be money left for the wedding, maybe?

Now, however, we have saved 20,000 euros over the past years, among other things through our wedding.

Was this amount a surplus from the wedding (good business model for equity to marry...) or did it remain with you because you didn't get married? Cars are overrated in Germany. The idea from to get rid of the car and invest in something used and value-stable. If you do that smartly, you won't have a 500€ loss in value per year. Overall, the liquidity is quite low for a house building project; the bank will also see that. With a monthly saving potential of 1700€, this situation should be able to change quickly.

The apartment is 120sqm and from 2012 and would cost 300,000€ from a private seller. I earn 2200 euros net and my wife has 1500 euros net. So total income is 3700 euros net. Currently we have expenses (rent, utilities, mobile phone, food, car loan, fuel, insurance, etc.) of just under 2000 euros altogether. And our saved equity amounts to 20,000 euros.

Should children come? Then there will be massive restrictions on consumption at the latest.

It is not about a house building project but about the purchase of an [ETW]. The right way was mentioned. Get rid of the car, pay off the loan. Buy cheap, buy an apartment.

I think the car is supposed to stay. I would use equity for the apartment purchase, continue paying off the car. But it also depends on the terms of the car loan.

This discussion about cars is not very fruitful. For me and my father, cars have always been something special and I ordered my first new car at 19. With significantly less than 2000 net back then and my own rented apartment. If you do not want to sell the car, talk to a financial advisor. He will be able to show you the best way. Will you both be listed in the land register with the same share? Have you thought about this in case of a separation? Does anything need to be renovated in the apartment?