In Belgium, more used cars are sold each year than new cars. Indeed, nearly 500,000 new vehicles are sold in Belgium, while the used car market accounts for around 700,000 units. Here are a few tips to help you make your car loan with full knowledge of the facts.

When is a vehicle considered to be in the new vehicle category?

In terms of auto financing, you benefit from advantageous conditions and a reduced APR as long as the desired vehicle is less than three years old since its first registration. After three years, it will be considered a used vehicle.

Auto financing or installment loan?

This is another important distinction to keep in mind. If you buy your vehicle from a professional used car dealer – currently, all car brands have a “used car” department – you can get auto financing and benefit from a reduced rate.

However, if you buy your used car from a private individual, you cannot get auto financing. You will have to take out an installment loan with less favorable conditions.

Why such a distinction?

Simply because of the additional warranty associated with the sale of the used vehicle. Indeed, when you buy a car from a private individual, you do not get any warranty on the vehicle.

On the other hand, if you buy your used car from a professional seller (a garage), they are required to provide you with a parts and labor warranty of at least one year and can – if you negotiate well – extend this warranty to two years. This is a legal provision that the professional seller cannot evade.

Since your credit organization has additional guarantees on the loan object, it is normal that the APR affecting your used car loan is reduced and more attractive.

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