Nowadays, getting a driver’s license leads to more and more travel conveniences. Every year, driving exams are taken by many students, and it is not uncommon for many of them to wish to obtain their own car to be much more independent from their parents. However, buying a vehicle has a considerable cost. Young people also have lower incomes, so obtaining a car loan becomes a solution in some cases. But under what conditions can a student obtain a car loan?
From what age can a student obtain a loan?
Of course, a person wishing to take out a car loan must be of legal age. This condition also applies to other types of loans such as a mortgage, vacation loan, motorcycle/scooter loan, as well as insurance and all other products offered by Crédit Populaire Européen. In any case, the official driving of a car can only be done at a minimum age of 18 years. Therefore, this requirement regarding the student’s majority will not pose any problem.
I am a student, under what conditions can I apply for a car loan?
The various formalities to be completed to obtain a car loan are quite simple. Unfortunately, the student cannot, on their own, be granted such a loan. Indeed, one of the primary conditions for the allocation of a loan is that one must be regularly remunerated. Thus, student jobs are not taken into account: only permanent contracts are valid.
A car loan is typically repaid over a period of three to five years (depending, of course, on the cost of the vehicle). Without fixed income, it is therefore impossible to ensure this repayment. Parents or any other adult will need to guarantee the commitments made for the student.
Furthermore, the student’s parents must be domiciled either in Belgium or Luxembourg. Moreover, anyone aspiring to obtain a loan cannot be listed or reported by the Belgian National Bank. However, it should be noted that some cases can bypass this clause, although, most of the time, these procedures are not the simplest.
What documents are required for the approval of a car loan?
When signing the contract certifying the approval and formalization of the car loan, the presence of the identity card as well as the residence card (for those not born in Belgium) is required. Then, the student’s parents will need to provide their last three pay slips as well as their last three bank statements attesting to the payment of this salary into the bank account. These documents are required for any type of loan.
More specifically and concerning the car loan, the order form is required for new cars. For used vehicles, the registration certificate and the gray card are mandatory, not to mention the private deed.
Example of a car loan
We invite you to use our simulator. You will notice that the APR applied to a new vehicle is lower than for a used vehicle. Why? This is simply due to the fact that the lender’s guarantee is higher. Indeed, in the event of resale, the new vehicle will retain more value. Vehicles less than 3 years old are also considered new.
New vehicle
| Loan amount | APR | Duration | Premium | Total cost |
| €22,000 | 4.99% | 60 months | €413.95 | €24,837 |
| €30,000 | 4.99% | 60 months | €564.48 | €33,868 |
Used vehicle over 3 years
| Loan amount | APR | Duration | Premium | Total cost |
| €22,000 | 8.5% | 60 months | €448.04 | €26,882 |
| €30,000 | 8.5% | 60 months | €610.96 | €36,657 |
