With car loans being very easy to get, it can be very tempting to purchase your dream vehicle even if it is out of your price range. What most people fail to realize is car loans will affect your ability to get a mortgage greatly. A vehicle and a home may be your biggest purchases so it is very important to plan these out correctly. We would not recommend getting stuck in a large vehicle loan before purchasing your first home. Purchasing a vehicle with a mortgage showing as a liability is a lot easier to do then purchasing a home with a vehicle showing as a liability. Vehicles are depreciating assets as homes for the most part are appreciating assets. In certain markets you may even be able to purchase a vehicle with something called a home equity line of credit (HELOC). For this to happen you would need to purchase a home first and if the value goes up enough or if you pay down enough of the mortgage, you build equity in the home. Once equity is built you apply for a home equity line of credit, where most of the time the interest rate is much lower than a conventional car loan. This money can be used like cash so you could potentially purchase your dream vehicle in cash. Mind you, payments will still need to be made on the HELOC but in certain situations where your fist property may be an investment property, your tenants rent could be covering the cost of your vehicle payments. It is definitely something to think about. Putting off the purchase of your dream vehicle for about a year could potentially save you lots of money and headache.