People who take out a car loan too quickly sometimes pay hundreds of euros too much. We give some tips for pruning the price tag.
1. The trusted bank is not always the cheapest solution
Many Belgians take out a loan with their trusted financial institution when they need capital. Some of those borrowers do so because they have little or no time to visit another financial institution. And that has not escaped the banks.
More and more banks are unpacking the possibility of taking out a loan online. For example, bpost bank recently announced that customers can now take out credit online. The bank leg of the Belgian postal company is thus following in the footsteps of the major banks and the internet players.
If you want to compare loans in a simple way, you can use one of our modules. For example, it is perfectly possible to review all car loans on our site. A quick comparison shows that they have the cheapest car loans on the market. Anyone taking out a regular car loan at one of the two major banks receives an annual cost percentage of 1.15 percent. That is up to two times cheaper than the most expensive player in our comparison: Who takes out a car loan with that internet player pays 2.49 percent.
2. Choose a customized loan
Who takes out a car loan, can enforce a cheaper rate at some banks if the car meets certain conditions. The major bank lowers the rate from 1.90 to 1.30 percent if the borrower buys an energy-efficient car.
The state bank also uses different rates. If you buy a car with low CO2 emissions, you will receive an interest rate of 1.15 percent (just like when purchasing a normal car). The large bank takes out the pruning knife as soon as someone buys an electric car, a hybrid plug-in or a car that runs on hydrogen or CNG. In such cases, the bank lowers the rate from 1.15 to 0.99 percent. That is also the lowest rate on the market.
In other cases, the banks adjust the rates upwards. This is the case, for example, when someone takes out a loan for a second-hand car. The criteria that the banks use to determine whether they adjust the rate vary. Some banks, already adjust the rate upwards as soon as the car is two years old. Others, only do this once the car is three years old. The rates can go up to 10 percent at some banks. With an interest rate of 2.95 percent, KBC is one of the cheapest players in the car loan market.
3. Choose the correct spread
Anyone taking out a loan can cut costs by paying back the loan faster. The shorter the loan period, the less interest the borrower has to pay. It is therefore important to find a perfect balance between the final price tag of the loan and the monthly charges.
The shorter the repayment period, the heavier the monthly payments on the family budget. On our site you can see at a glance how much interest you have to pay per period and per amount.