To calculate the financing for the acquisition of a new car, the simplest way is to use a simulator. On the CPE website, you have a powerful tool that allows you to find out the amount of your monthly payments in just a few clicks.

This solution offers the possibility of quickly sending your credit request for study and processing. Of course, only your signature on a loan agreement marks your commitment.

Using the CPE Site Simulator

The simulator offered by CPE is easy to use, just fill in the fields marked with an asterisk. You can leave other fields blank. If necessary, a CPE broker will contact you for additional information.

The first step in using the simulator concerns the characteristics of the credit requested. For a new vehicle, you must choose the “vehicles” option and then “new car”. You must then specify the price of the car and select the amount of monthly payments or credit duration that suits you best. The second page is related to information about you. If you are applying for a loan for another person, the co-borrower’s personal details must also be entered.

On the third page you give the characteristics of the vehicle. You then go to the fourth page dedicated to receiving your contact details. You still have to complete the fifth page relating to your professional situation before arriving at the last page which lists the financial information concerning you.

Choose a loan according to the type of car

Generally, a car loan is repaid between 12 and 84 months. In Belgium, credit organizations take into account the age of the vehicle to be acquired to set their interest rate. Up to 2 years old, the automobile is considered new and therefore benefits from a more advantageous rate than a used vehicle.

Also note that you can opt for car financing with residual value. This type of credit is advantageous if you want to resell your vehicle when your credit is finished.

You would like to lease a company car. In this case, you have the choice between operational leasing and financial leasing. Please note, these two formulas are only intended for companies, self-employed people or professionals, never for individuals. A comparison.

Financial leasing

With financial leasing, you rent the car for a specific period from the leasing company. The contract does not include operational monitoring – think about insurance, maintenance, possible repairs and tires. So you will have to take care of it. At the end of the contract, a purchase option is provided: it gives you the right (but not the obligation) to repurchase the car at a given residual value. So, during the duration of the contract, you are not the owner of the car, you only become one when the residual value is paid. In this case, you will have to register the car again and pay a new registration tax.

Note also that financial leasing is not limited to car financing. In fact, the financial leasing contract is defined as a rental contract for movable or immovable property concluded between a bank and its client and which is accompanied at the end of the monthly repayments by a purchase option, which However, this is not obligatory. We think, for example, of an SME which used financial leasing to ensure the financing of its computers, its printer, etc.

Operational leasing

In the case of operational leasing, you benefit, alongside the rental of the car, from a whole series of additional services: interest, taxes, maintenance costs, possible repairs, insurance, depreciation, etc. The leasing company therefore assumes all management and administration of the car. It is no longer necessary to keep garage invoices and gas station tickets, making it easier to deduct automobile costs from tax.

Operational leasing is therefore an “all-in” formula: fuel, technical assistance and a replacement car are often included in the contract. Unpleasant surprises, such as unexpected repairs, are in principle excluded: you know in advance the exact periodic amounts to be paid. In short: risk and cost control is central.

In terms of operational leasing, you receive an invoice each month which lists all the services included in your leasing. You do not own the car and you cannot become one. At the end of the contract, you must change cars.

When considering car financing, you should ask yourself whether you want to finance all or part of the acquisition of your new vehicle. Le financement partiel voiture est mieux connu sous l’appellation financing with residual value at the end  of the contract. This choice will have incidents which we briefly analyze below.

Does car financing with residual value apply to used vehicles ?

In principle no because the residual value is paid in terms of the contract after 4 or 5 years. This payment therefore excludes the possibility that it could be a used vehicle which has already lost its market value after a few years.

Simulate your car loan online

What is residual value financing ?

Financing with residual value is therefore partial financing of the price of the car. Thus, the borrower only borrows 60% of the value of the car and at the end of the contract, he will have to pay the residual value, therefore the balance, in one go. In general, the residual value is set at 40% of the value of the purchase price of the car.

Which is the most interesting formula : borrow in full or borrow with residual value ?

This is a question that many people ask us, but in reality the question is not posed in these terms. It is quite obvious that someone who borrows the entire value of a vehicle of €45,000 to be repaid in 5 years will pay a higher monthly payment than someone who borrows €27,000 for the same vehicle with a residual value at the end of the contract. €18,000 (i.e. 40% of €45,000). The latter will have a lower monthly payment for 5 years but he will have to pay at the end of the contract in one go, the residual value of €18,000. However, not everyone is able to pay €18,000 in one go.

So who is interested in taking out car financing with residual value ?

The Car financing with residual value is ideal for borrowers who resell their vehicle at the end of their credit contract after 4 or 5 years, i.e. those who change vehicles every 4 or 5 years. Indeed, in this case, this borrower will only finance 60% of the value of the vehicle during the life of his credit contract and therefore his monthly payment will be lower than if he had borrowed the entire value of the vehicle and at the end, he resells the vehicle to a third party or to a garage and then reimburses the residual value of 40%. We therefore understand why this formula is perfectly suited to the acquisition of a new, quality vehicle which will retain a good residual resale value after 4 or 5 years.

Conversely, anyone who intends to keep their vehicle for more than 5 years has a much greater interest in financing the total price of the vehicle’s value.
Simulate your car loan online

Driving “ green ” means reducing the release of C0² produced by your vehicle into the atmosphere while significantly reducing fuel consumption. The hybrid car constitutes an interesting alternative to achieve this objective. What credit for the purchase of a hybrid vehicle?

Various incentive measures are taken both at the federal state level and in each region to encourage Belgian motorists to choose this type of vehicle. What are these bonuses and deductions?  Follow the leader.

Simulate your car loan online

The ecobonus of the Wallonia region

A recent survey carried out by the car retailer Cardoen indicates that only 2.6% of Belgians plan to purchase a hybrid car.  To encourage them, the Wallonia region is offering an ecobonus bonus of 2,500 euros for vehicles registered since January 1, 2013 whose CO² emission rate is between 0 and 20 g/km.   

For a rate between 21 and 40 g/km, this premium is 2,000 euros.   Between 41 and 50g/km, it drops to 1,500 euros, then to 500 euros for C0² emissions which fluctuate between 51 and 60g/km.     Finally, if the car emits between 61 and 70 g/km of CO², the premium is reduced to only 250 euros.  This bonus concerns hybrid vehicles whose catalog price does not exceed 30,000 euros .

Update on tax deductions

If the CO² emission per km does not exceed 105g, the Belgian motorist benefits from a tax reduction equivalent to 15 % of the purchase price of the car, an amount capped at 3 280 euros.    On the contrary, if the rejection rate is between 105 and 115 g/km, the tax reduction is 3% of the purchase price, with a limit set at 615 euros.  

This tax reduction occurs directly at the time of acquisition since it is deducted from the amount to be paid by the motorist.

Finally, companies benefit from a tax reduction of 90% if they use a hybrid vehicle to transport their employees.  At the same time, they benefit from a relatively low level of their all-in-kind benefit (ATN) which is 55 euros, and benefits from a reduced taxable amount. 

Simulate your car loan online