Car finance with my income?

Moin moin, I have finished my apprenticeship and my first contract is limited to 1 year. I live alone in Hamburg 24 years old and earn around 1700 net as a beginner. In a few years I have already saved a little (7000 euro) and would like to buy or finance a car (Mercedes A class) between 20-25,000 euro. I live very frugally especially Do not smoke or drink in Corona times.

Apartment warm 450 euro

Ticket 70 euro

Internet mobile phone netflix cca 100 euro

Food 350-400 euro

Clothes 100 euro

As you can see, I can save up to 500 euro a month and wanted to know whether this salary would allow me to finance a car and still lead a normal life without getting into trouble.

Work out exactly how expensive the car will be per month or year. Insurance, taxes, parking space rental…

Plus the consumption costs and repairs.

Does it have to be a wickedly expensive car for 20,000 euro?

For 10,000 you can get something good

Just try the car dealership bank, at the house bank it can happen that your fixed-term employment contract gets in the way, but it can also happen at the car bank, so good luck.

Yes, financing could work with 500 euro.

But I would advise against getting into debt for a car.

I see that as problematic. Because if you only have a fixed-term employment contract, you will not get any longer credit periods beyond your employment contract. You forgot to consider in your listing that a car also costs monthly maintenance. Namely gasoline, insurance and, if it should be possible to get financing, the monthly installment payment.

It doesn't have to be, but as a reward for me who has done everything on my own in the last 3 years without debts without family 16,000 km from home (Australia) More sums in the current account make no sense to me simply because of inflation etc.

Then pay everything in cash. Car loan is burning money

The problem will be the fixed-term employment contract for you.

Let's assume a purchase price of 20,000.00. 6,000.00 down payment = financing 14,000.00 (the remaining 1,000.00 for tax, registration, other). But after that you have nothing more to save.

With a 48 month term, this will cost you around 313 euro per month.

In addition, there's now the insurance (possibly with fully comprehensive insurance). Do you have to do the math for yourself. Besides, you still want to drive. That also costs something.

Conclusion: Yes, you can afford the vehicle, but your employment contract poses the problem.

PS: 450.00 warm rent for HH is a great reward.

Unfortunately, more than a great reward for HH. 22k € in cash looks impossible.