Share article:
Share article:

Belgians borrow 17% more from the bank to buy a new car

The repayment terms are becoming longer as well. Credit: Pexels

The amount of money that Belgians borrow from the bank to buy a new car has increased by 17% since 2015, according to figures by Belfius Bank.

On average, Belgians borrowed €15.400 to buy a car in 2019. People took out a loan of €19.200 for a new car, and €12.500 for a used one.

“In 2019, 57% of car loans were for the acquisition of a used car, compared to 43% for a new one,” said Ulrike Pommee, a Belfius spokesperson, reports NewMobility.

The repayment terms are becoming longer as well, with an average duration of 49 months for a used car and 60 months for a new one in 2019, compared to 47 and 58 months in 2015, respectively.

The average age of a person borrowing money to but a new car is 47 years old, and 39 for a used one, according to Belfius’ figures. People under the age of 30 make up about a third of the borrowers for a used car, and about 14% for a new one.

Borrowing rates for new cars are rising very slightly again, after a steady decline in recent years. They fell from 3,05% in 2013 to 0,80% in 2019. However, by the end of February 2020, they will rise again to 0,99%.

Additionally, banks often propose lower rates for eco-friendly cars, as well. “0,80% for electric cars, plug-in hybrids or cars running on natural gas or hydrogen, regardless of the term of the loan,” said Pommee.

The ‘eco’ loan allows customers to borrow up to 120% of the purchase price to cover any additional costs linked to the change from a diesel or petrol car to an electric one, like the installation of a charging station or solar panels, for example.

“The investment a customer makes in such a vehicle is considerable. A cheaper loan can tip the balance sheet,” said Pieter Kussé, a KBC spokesperson, reports De Tijd.

Maïthé Chini
The Brussels Times

Latest news

European Parliament wants to sue the Commission for delaying rule of law conditionality
In a rare move on Thursday, the Legal Affairs Committee of the European Parliament voted for the Parliament to take the European Commission to court ...
Mayor wants to close two Brussels bars where alleged sexual assaults took place
Ixelles' Mayor Christos Doulkeridis (Ecolo) said that he’d like to close the two bars that employed a man accused of raping multiple patrons, ...
‘Untenable’: Mayor says situation at Brussels North station is out of control
The situation at Brussels North Station is no longer tenable, Schaerbeek's mayor Cécile Jodogne (Défi) says. Drug dealing, homelessness, ...
Suicide second-leading cause of death among European youth
Suicide is the number two killer among young people living in Europe, a recent Unicef report on the state of their mental health found. The ...
‘Too little, too late’: Brussels mayors criticise CST implementation
After a two week delay, the Covid Safe Ticket (CST) will become mandatory in several situations in Brussels from today (Friday). Some mayors blame a ...
Sciensano expert warns of rising Covid-19 cases this winter
The return of colder weather and the relaxing of health measures are giving rise to new Covid-19 contaminations and hospitalisations around Belgium, ...
Hospital food is making you sick, Belgian study shows
Eating hospital meals results in a measurable decline in health, according to a report from the Flemish television network VTM, which paints a ...
Belgium in Brief: Supply Issues
There are few things more jarring than walking into a store and finding that the shelves are empty, be that partially or otherwise. One thing ...
Stolen Magritte painting on display for first time in ten years
Surrealist painter René Magritte's work "Olympia", which made headlines across the world when it was stolen from a museum in Belgium in 2009, will be ...
Brussels airport pilots ’15 minute’ PCR test
Brussels Airport has announced that it will soon begin a trial of an ultra-fast PCR test able to detect Covid-19 in 15 minutes, a far faster ...
Over 1,000 demonstrators march in Brussels following sexual assault allegations
Around 1,300 people gathered in Ixelles on Thursday night to march against sexual violence, according to reporting from Bruzz. The march was ...
Covid Safe Ticket mandatory in Brussels, but no fines yet
The Brussels-Capital Region will expand the use of the Covid Safe Ticket (CST) from today (Friday), but it will take a few days before rule-breakers ...