When Is a Vehicle Considered “New” for Car Financing?

For car credit in Belgium, the notion of a “new” car does not only refer to a car leaving the factory. In terms of financing, you benefit from more advantageous conditions and a reduced APR as long as the vehicle you wish to buy is less than three years old from its first registration.

Concretely, this means that a car that has already had one or more owners may still be considered as a “new vehicle” by your credit institution if its first registration is less than three years old. Beyond this three‑year threshold, the vehicle will automatically be considered as a used car for financing purposes, and the applicable loan conditions may change.

Understanding this distinction allows you to optimize the timing of your purchase and potentially access more favorable rates. A vehicle that is 2 years and 10 months old will not be financed under the same conditions if you wait several months before applying for your loan.

Car Financing or Installment Loan: Which One for Your Used Vehicle?

The type of credit you can obtain for your used car depends mainly on the type of seller. If you buy your vehicle from a professional specialized in second‑hand cars – today, almost all brands have a “used cars” department – you can usually obtain car financing with a preferential rate.

On the other hand, if you choose a vehicle sold by a private individual, car financing is generally not possible. In that case, you will need to take out an installment loan to finance your purchase, often with less advantageous conditions than those of classic car financing.

Before signing any contract, take the time to compare the total cost of each solution: interest rate (APR), duration of the loan, possible fees and flexibility conditions in case of early repayment. The right choice of product can significantly influence the overall cost of your used car loan.

Why Is There a Difference Between Professional and Private Sellers?

The main reason for this distinction lies in the warranty attached to the sale of the used vehicle. When you buy a car from a private individual, you generally do not benefit from any legal warranty on the vehicle. Possible defects and repairs are often entirely at your own expense once the sale is completed.

Conversely, if you buy your used car from a professional seller (garage owner or dealership), they are legally required to provide you with a parts and labor warranty of at least one year. With good negotiation, this warranty can sometimes be extended up to two years. This legal protection cannot be waived by the professional and offers additional security, both for you and for the lender.

Since your credit institution benefits from better security on the financed vehicle thanks to this warranty, it is normal that the APR applicable to your used car loan granted via a professional seller is often more attractive and reduced compared to financing a car bought from a private individual.