Thousands of Lithuanians will receive second pillar pension contribution payouts in 2025. Some plan holidays, others home renovations. But perhaps it's finally time to buy that car you've been dreaming about?
In this article – whether a car is a smart investment, and how to make the most of your pension funds.
How much money will I receive?
Illustration: How much money will I receive?
Average amounts
| Savings period | Average amount |
|---|---|
| 5-10 years | €3,000 – €8,000 |
| 10-15 years | €8,000 – €15,000 |
| 15-20 years | €15,000 – €30,000 |
| 20+ years | €30,000+ |
Important: You can withdraw up to €10,000 without additional taxes (if you meet the conditions).
When will I receive it?
- Payouts started at the end of 2024
- Applications can be submitted through the State Social Insurance Fund
- Funds are transferred within 1-3 months
Car as an investment: pros and cons
✅ Why IT'S WORTH investing in a car
1. Practical everyday benefit
- Time saved (vs. public transport)
- Freedom to travel
- Convenience for the family
2. Long-term value
- A good car serves 5-10+ years
- Quality used cars retain value well
- Possibility to resell in the future
3. Financial logic
- Instead of renting/taxi – your own transport
- Opportunity to work further from home (higher salary)
- Lower overall transport costs in the long term
⚠️ Things to watch out for
1. A car is not a "traditional" investment
- Value decreases (depreciation)
- Requires maintenance costs
2. Keep a reserve
- Don't spend ALL your funds on a car
- Keep €2-3k for unexpected expenses
How much car can I afford?
The golden rule
Car price ≤ 50% of received payout
Example:
- You received €15,000 payout
- Allocate up to €7,500 for the car
- Keep the remaining €7,500 – for reserve or other needs
Alternative: down payment + leasing
If you want a better car:
| Payout | Down payment | Car price | Monthly payment |
|---|---|---|---|
| €10,000 | €5,000 (50%) | €15,000 | ~€200/month |
| €15,000 | €7,500 (50%) | €25,000 | ~€320/month |
| €20,000 | €10,000 (50%) | €35,000 | ~€450/month |
Advantage: Larger down payment = lower interest, smaller monthly payment.
What to buy with pension funds?
For €5,000 – €8,000
Best choices:
- Toyota Yaris/Auris (2012-2016)
- Honda Jazz (2010-2015)
- Mazda 3 (2012-2015)
- Škoda Fabia/Rapid (2012-2016)
What you get: A reliable everyday car with 100-150k km.
For €8,000 – €15,000
Best choices:
- Toyota Corolla/RAV4 (2015-2018)
- Mazda 6/CX-5 (2014-2017)
- Škoda Octavia III (2015-2018)
- VW Golf VII (2014-2017)
What you get: A modern, well-equipped car with 80-120k km.
For €15,000 – €25,000
Best choices:
- Toyota RAV4 Hybrid (2016-2019)
- Mazda CX-5 (2017-2020)
- VW Tiguan (2017-2019)
- Škoda Superb (2016-2019)
What you get: A premium class car or newer SUV with modern technologies.
5 mistakes to avoid
Illustration: 5 mistakes to avoid
1. Spend everything on a car
❌ "I received €12,000, I'll buy for €12,000"
✅ Keep a reserve for insurance, registration, unexpected expenses
2. Buy impulsively
❌ "I saw an ad, I'll buy tomorrow"
✅ Compare 5-10 options, check the VIN, inspect with a mechanic
3. Ignore maintenance costs
❌ "I'll buy a BMW because the price is good"
✅ Calculate: insurance + servicing + fuel = real monthly cost
4. Choose only by appearance
❌ "It's beautiful, leather seats, I'll buy"
✅ Reliability > appearance. Service history is essential.
5. Forget about financing options
❌ "I have €8,000, I'll buy for €8,000"
✅ With leasing you can get a €15,000 car with lower total costs
Practical plan
Step by step:
1. Calculate your budget
- How much payout do you get?
- How much can you allocate for a car (max 50-70%)?
- Do you want leasing or buy with cash?
2. Select 3-5 models
- According to budget
- According to needs (family, work, travel)
- According to reliability ratings
3. Search for listings
- Autoplius, Autogidas
- Filter by year, mileage, price
4. Check before buying
- VIN report
- Mechanic inspection
- Test drive
5. Negotiate and buy
- You can typically negotiate 5-15%
- Contract in writing
- Re-registration within 7 days
Alternative: down payment for leasing
Why is this smart?
| Option | Car | Over 5 years |
|---|---|---|
| Cash €10,000 | €10,000 car | Depreciates ~€5,000 |
| €5,000 down + leasing | €20,000 car | Depreciates ~€12,000 |
Result: With leasing you get a better car that retains more value.
Leasing advantages with a large down payment:
- ✅ Lower monthly payments
- ✅ Lower interest rates
- ✅ Better car
- ✅ Money left for reserve
FAQ
Do I have to pay taxes on the payout?
Up to €10,000 – no (if you meet the conditions). Above €10,000 – there may be personal income tax.
When is the best time to buy a car?
Year-end (November-December) or January-February – more room for negotiation.
Is it worth buying a new car?
With a pension payout – it's better to buy a quality used car. A new car loses 20-30% of its value in the first year.
How long does car searching take?
We recommend spending 2-4 weeks – don't rush!
Received your pension payout and considering a car? Contact WHEELSTREET – we'll help you choose the best option for your budget.
Also useful to read:
- 💰 Car Financing Methods 2025
- 🔍 WHEELSTREET Financing – financing from 0%
- 🚗 Used cars WHEELSTREET – verified options
- 💡 Leasing Calculator
- 📚 Leasing — Dictionary
- 📚 Down payment — Dictionary
Buy from Lithuania
Looking to buy a quality used car from Lithuania? WHEELSTREET offers professional car sourcing with full inspection, history check and cross-border delivery across Europe. Browse verified inventory at WHEELSTREET Used Cars or request a custom car search at Car Sourcing Service.
WHEELSTREET ☎ +370 610 33377 | wheelstreet.lt
