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.

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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.
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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.

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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. 

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The crisis that has been raging in Europe since 2008 does not only have bad sides. Since European governments have tackled public deficits, a panel of austerity measures has been implemented by member states to try to generate more tax revenue to replenish state coffers.

Difficult equation to say the least: increasing the tax burden on citizens while trying to maintain their purchasing power. To date, this is a rather lost bet if one refers to the trend of internal consumption in Europe. The European citizen is affected by their purchasing power and is withdrawing into themselves. As a result, consumption is sluggish. Among the many sectors of the economy affected, the automobile market is severely suffering.

But is this bad news for your wallet? Not necessarily…

The Collapse of New Car Sales

In Belgium, 70% of car transactions involve used vehicles. A little over 12 million vehicles were sold within the EEA in 2012, which corresponds to a total drop of 8.2% compared to 2011. All the figures in this report.

The countries most affected by this decline are: France (-13.9%), Spain (-13.4%), and Italy (-19.9%). Germany limits the drop to -2.9% and surprisingly the United Kingdom gains +3.7%.

Among manufacturers, it’s a bloodbath: PSA Peugeot (-12.9%), Renault (-18.9%), Fiat (-15.8%), GM, and Opel (-15.6%) particularly suffered in 2012.

Other brands stand out: Audi grew by 3.7%, BMW (-0.1%), Mercedes (-0.9%), Hyundai (+9.4%), and Kia soared to (+14.6%).

It’s Time to Buy Your New Vehicle…

Why buy a new vehicle rather than a used one? Citizens facing austerity buy more used vehicles. As mentioned, 70% of transactions involve used vehicles! But what if that’s not the best calculation…

Here are a few keys that could lead you to make a good deal:

• Many car brands have very large stocks of unsold vehicles…
• These brands therefore offer discounts on new vehicles that can reach up to …40% off the sale price. Examples in this report.
• The warranty on a new vehicle can last up to 5 years. You have no warranty on a used vehicle bought from an individual…
• You can resell your vehicle after 4 or 5 years and receive enough value to pay your residual value, and this is all the more true since 70% of other consumers will be looking for a used vehicle…
• Your new car financing is much more attractive than an installment loan for a used vehicle…

Buying a New Vehicle with Residual Value

You can buy your vehicle with a residual value purchase option; in this case, you only finance 60% of the price of your vehicle and after 5 years different choices open up to you:

• Either you buy the residual value by paying the remaining 40% balance in cash;
• Or you resell your used vehicle and thus repay the remaining balance due.

If you opt to change your vehicle every 5 years, it will be advisable to buy your vehicle with a residual value. However, if you wish to keep your vehicle longer, a comprehensive car loan is more interesting;

What are we talking about? It should be noted that the APR for new car financing is around 4%, while that for a used vehicle is about 10%

An Example is Better than All the Speeches…

• A new luxury vehicle: value €35,000 (not counting the discount you could negotiate…). 5-year warranty. You finance with residual value 60/40. So you finance 60% of €35,000 = €21,000. After 5 years: you will have a balance of €14,000 to pay.

Loan of €21,000 over 5 years at an APR of 4.99% or a monthly payment of €395.14 and a total cost of €23,708.

After 5 years, you resell your vehicle for €13,000. Your vehicle will have cost you €24,708 instead of €39,000 (if you had borrowed €35,000 over 5 years).

• Assume you get a 30% discount on purchase. Vehicle price: €35,000 – 30% discount or €10,500. Purchase price €24,950. You finance 60% of the vehicle or: €14,970. Remaining balance after 5 years of €9,980.

Loan of €14,970 over 5 years at an APR of 4.99% or a monthly payment of €281.68 and a total cost of €16,900.

After 5 years, you resell the same vehicle for €13,000. Your vehicle will cost you €13,880 (i.e., €16,900 + €9,980 – €13,000).

In conclusion: You pay for your vehicle the same price as a used car buyer 5 years after the acquisition date (not counting the financing of this used vehicle for €13,000 at 9.95% over 5 years for a total cost of €15,885). Your advantage in this case is €2,885…

It is sometimes worth getting your information and your calculator.

Are you determined to purchase a new or used vehicle and want to borrow money to finance your purchase?

On our website, you will find a very handy tool to give you a precise idea of the cost, duration, and interest rates of your auto financing. Visit our website and use our auto loan simulator.

How does it work? Very simply: follow these few instructions.

Choose your project: vehicles. Several options are then available to you: new vehicle, used car over 3 years old, used car less than or equal to 3 years old.

Next, specify the loan amount: let’s say €15,000. Click on the calculate button. The simulator will then show you the amount you will need to repay as well as the duration of the loan. You can adjust your request based on the duration or the monthly payment.

Once the amounts are satisfactory, you can then submit your request.

The second screen provides a quick overview of your request. Then fill out the form. Rest assured, this form is just a simulation and does not commit you to anything.

Complete the mandatory fields marked with an asterisk, and to speed up the processing of your file, you can fill out the other fields. Don’t forget to select “I am borrowing with another person” or “alone”. In this case, don’t forget to complete the co-borrower’s information. Once the mandatory fields are filled out, click on the next page. If you forget a field, it will be highlighted in red.

A third page opens. You will notice that no fields are mandatory; you are free to fill them out. Fill in the loan amount and/or down payment, for example.

The next screen concerns your address. Some fields are mandatory; fill them out. Then move on to the next page.

Now complete the mandatory fields related to your professional situation and then click on the next page. At the financial data level, only one field is mandatory.

You can then submit your request, and only at this point will it be processed. Rest assured: you will only be committed after signing your credit contract, and not before! In case of difficulties, call us, and we will complete your request together.

The Auto Show, which traditionally takes place at Heysel, will not be held in 2024. The Board of Directors of the Belgian and Luxembourg Automobile and Cycle Federation (Febiac) has decided not to organize a physical Auto Show next year. This was confirmed by the federation on Friday, according to L’Echo.

Firstly, Febiac has always aimed to offer visitors a high-quality and representative experience. Given that the conditions are not met! The board concluded that it was not appropriate to proceed with the plans for 2024, Febiac said in a statement.

The definitive end of the show?

Firstly, when asked about this, Febiac confirmed the information through its spokesperson Christophe Dubon. “To organize a show, three conditions had to be met. First, public interest, and we noticed during the last show that there was interest. Secondly, favorable sanitary conditions.

Finally, the interest of the exhibitors. And apparently, it was on this last point that it got stuck. This morning, we held a board meeting with all the members of Febiac. And it turned out that there would not be enough brands represented to organize a show in 2024.”

The decision is therefore made: no show next January. “It’s a disappointment because the 2023 show was unanimously praised by Belgian and foreign media. Public attendance was good but not exceptional.”

Although the decision made this morning is final: there will be no show in 2024. “A definitive end? Nothing is finalized,” responds Febiac.

“There will therefore be no physical show. But the brands are free to use this moment to offer their customers conditions similar to those of a show.”

However, according to our information, the decision of D’Ieteren, the importer of brands such as Volkswagen, Audi, Seat, Skoda, Porsche, and Bugatti, not to participate in the Auto Show dealt a severe blow to the organization.

Because groups such as Stellantis and Renault did not want to be present if a sufficient number of brands were not represented. Last year, Mercedes-Benz and Volvo also decided not to participate in the hundredth edition of the show.

D’Ieteren refuses to confirm its position

Finally, the D’Ieteren group did not wish to confirm this information. “Febiac’s decisions are made collectively. And it is not our goal to reveal everyone’s positions,” commented Jean-Marc Ponteville, spokesperson for D’Ieteren.

“What is important is that Febiac’s decision concerns only 2024. And does not prejudge what will happen in the future.”

To recall, the D’Ieteren group also announced that it would not participate physically in the 2022 Auto Show, before it was eventually canceled for sanitary reasons. However, the group finally agreed to participate in the 100th edition in 2023.

A biker parade will also take place on January 18th!

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Finally, on this occasion, take advantage of our reduced interest rates throughout the duration of the Auto Show!

Here are some practical information from CPE to whet your appetite while waiting for the doors to open.

Some practical information

The Brussels Expo is located at Place de Belgique / Avenue de Miramar in 1020 Brussels. The entrance fee for adults is €13. For children aged 6 to 12, it is reduced to €7, and entry is completely free for children under 6. PROMO OFFER: the access card for a group of 10 people costs only €80 (This card is not valid on weekends). Online tickets will be available via the website from mid-December.

The show is not reserved only for cars and autos; you will also find pavilions exhibiting station wagons, sedans, light commercial vehicles, coupes, light aviation, bicycles, etc… enough to make both young and old dream… more information here on the various pavilions.

Buy your new car on credit without worry

If you plan to buy your new vehicle on credit at the Auto Show, it is not necessary to contact us beforehand. No administrative steps are required before signing your order form.

You visit the Auto Show and find the vehicle that suits you. After negotiating with the sellers, you decide to sign an order form.

You will then just need to send us this order form so that we can open your auto financing request together.

Why buy my new vehicle at the 2019 Auto Show?

On the occasion of the Auto Show, many dealers and car brands offer discounts on the catalog purchase price that can reach 20%. Sometimes, it is even unnecessary to go to the Auto Show itself if you already have in mind the vehicle you want to buy. Go directly to your local dealer who will offer the show conditions throughout the duration of the Auto Show.

APR for new cars during the Auto Show

Our usual APR for new cars ranges from 4.10% to 6% depending on the quality of your file.

Exceptionally, throughout the duration of the show, we are reducing the initial APR to 3.49%! To determine the cost of your new car financing, visit our website, our credit simulator will be of great help.

Conditions for granting a new car loan

To open your credit application, we ask you to provide us with:

• A copy of the order form for your new vehicle;
• A copy of your identity card;
• Your last three pay slips.

You will send us a copy of the purchase invoice upon delivery of your new car.

You will receive a response to your auto financing request within 24 hours of submitting your file.
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Execution of your auto financing contract

You have the option to choose when you want to start your monthly payments:

• Either the month following the acceptance of the signature of your auto financing contract;
• Or the month following the delivery of your new vehicle (it is sometimes necessary to wait three months before receiving the delivery of your new vehicle).

Dream cars

Tip: visit the pavilion reserved for dream cars: you will see 50 dream vehicles on display… both kids and adults love it…!

A vehicle financed through a loan can, in certain cases, be sold even if the repayment has not yet been completed. There are a number of steps to follow and conditions to meet in order to carry out such an operation. Want to sell a car?

Indeed, the nature of the loan and the various clauses specified in the credit agreement must be taken into account before the possible sale of a car still under credit.

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Constraints related to the nature of the loan

Regarding the constraints related to the nature of the loan. First, the latter conditions the possibility of selling a car financed by a loan. For example, if the borrower purchased the vehicle through an unsecured loan, the lending institution does not require any justification regarding the use of the granted capital. This applies notably to personal loans or consumer credit. In this case, the borrower can dispose of the vehicle as they see fit, even if the credit institution has contributed partially or fully to its acquisition.

Sell your vehicle?

Conversely, if the financing of the purchase of the car was done through a car loan, the sale is not always permitted. According to the credit institution, this type of loan can be accompanied by the pledging of the vehicle. In this case, it is impossible to sell the car as long as the loan is not fully repaid because legally, the lending institution is the owner. However, it is possible to negotiate with the bank if the proceeds from the sale of the car are used to repay the loan.

Loan agreement clauses

Regarding the loan agreement clauses, it is important to carefully read the loan agreement before considering selling a vehicle purchased with the help of a credit institution and still being repaid. Indeed, some clauses may stipulate that the borrower cannot sell the vehicle, the object of the loan, without the lender’s consent. In this case, it is essential to contact the lender to seek their approval.

Additionally, it is always useful to review the terms of the loan agreement regarding vehicle ownership. If the document states that the car remains the property of the lending institution until the loan is fully repaid, it is then inadvisable to proceed with its sale to avoid violating the law for misappropriation of pledged assets.

Market credit offers aim to respond increasingly satisfactorily to consumer needs. But also to their repayment capacities. This results in a multitude of possibilities in terms of ideal monthly payments for a car loan.

Regarding the car loan, the amount and number of monthly payments to be made by the borrower closely depend on the type of loan, its duration, the interest rate, and the amount of the personal contribution.

Monthly payments adapted to each goal

Even though the duration of a car loan varies from one to seven years, the ideal number of monthly payments is between 24 and 60 months, with few exceptions.

Most of the time, a self-employed worker seeks to buy a car that they can use both for their professional activities and for personal use. Banks take this usage and the self-employed person’s situation into account in their credit offer to adapt it best to the borrower’s repayment possibilities.

The peculiarity of self-employed individuals is that they have rather variable incomes, so it will be necessary to aim for an average number of monthly payments and take this change into account when calculating income. It is important to remember that as a self-employed person, you can benefit from tax deductions for the purchase and use of a car for your professional travel.

On the other hand, an individual who wishes to buy a car through a bank loan can rely on stable and predictable income. The number of adapted monthly payments will depend on the actual repayment capacity. You can use our online credit simulator, which will help you make the right choice. The loan duration often varies between 12 and 84 months, and even up to 120 months for some models costing more than 37,000 euros.

It should be noted that if the vehicle benefits from a warranty of more than five years, it may be wiser to extend the repayment duration to lighten the amount of the monthly payments.

The type of loan can vary the monthly payments

The number of monthly payments also depends on the type of loan.

It is, for example, entirely possible not to borrow the entire price of the vehicle. This is what specialists call a “loan with residual value.” Consequently, part of the car is not financed, often equivalent to 30 or 50% of it. The main advantage of this method is to offer lower monthly payments. However, it is only interesting if you plan to resell or amortize your vehicle after four or five years of use. Indeed, at the end of the loan contract, you must pay the residual value to the credit institution.

Classic auto financing is a formula that allows you to acquire the entire value of the vehicle through a loan. No personal funds are required, although having a small nest egg generally helps reduce the number of monthly payments.

Before any subscription, it is recommended to estimate the amount of your income, subtract annual expenses, and calculate your possibilities in terms of monthly payments. When you get the result, try to evaluate if the obtained amount is sufficient, over a repayment period of 2 to 5 years, to acquire the desired vehicle. This will avoid any disappointment.

Type of car and ideal monthly payments for a car loan

First of all, the price of a new vehicle is significantly higher than that of a used one. Furthermore, credit institutions in Belgium take into account the age of the car in their credit offer. This is why the APR for a loan to acquire a new car is more favorable than for a used one. A high-priced car often requires a longer loan duration, which reduces the interest rate. Banks require guarantees to offer long-term financing. If you plan to repay your loan for more than five years, the bank may require additional guarantees to offset the depreciation of the vehicle over time.

Finally, in terms of auto loans, each case is unique. To avoid endless calculations and quickly benefit from the best credit advice, do not hesitate to contact our specialized brokers. A detailed analysis will be carried out to offer you the most suitable solutions for your situation and perfectly meeting your needs.

You’ve just signed a car financing agreement with your broker and you’re wondering about the taxes associated with your vehicle. The purchase and use of a vehicle are taxed in various ways. But the tax administration also grants you some tax deductions. Here’s an overview.

Taxes

• VAT: Are you buying a new vehicle? You pay 21% VAT on the final price. Are you buying a used car? It all depends on who is selling it to you:
  • An individual: VAT does not apply
  • A VAT-registered seller: 21% VAT on the profit margin or 21% VAT on the total price.

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• Registration tax: The registration tax is levied when the vehicle is first registered in your name, whether new or used. Its amount depends on the engine size (fiscal horsepower) and/or power (KW) as well as the age of the vehicle.

• Annual road tax: This tax is levied based on your engine power, engine size (fiscal horsepower), or the maximum authorized mass (MAM) of the vehicle. If you change vehicles, your new tax will be deducted from the surplus already paid for your old vehicle.

Tax deductions

• Deductibility of interest: If you take out a loan for your car, your monthly payment includes the repayment of the principal and the payment of interest. If you opt for the deduction of actual professional expenses, you can then fully deduct the interest related to the professional use of your car.

Example: On February 1, 2011, you take out a loan of 7,500 euros over 36 months at an annual effective rate of 5.75%. For 2011, the total interest to be considered amounts to 309.38 euros. This is the total interest for the first 11 months according to the amortization schedule linked to your contract. Let’s assume that 70% of your car expenses are professional. For the income year 2011, you can therefore deduct 216.57 euros (70% of 309.38 euros).
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Note that for motorcycles, all expenses are 100% deductible.