Before you buy a car, think about what you need from one
Before doing anything else, you should define just how you plan to use your new vehicle:
- Will it be your main car or a second car?
- Will you drive it every day or only once in a while?
- How many kilometres do you think you’ll drive per year?
- What environment will you drive it in: the city, the countryside, or both?
- How many passengers should the car hold?
Taking the answers to these questions, you can determine what kind of car meets all your needs, including:
- petrol or diesel engine, electric motor or hybrid
- fuel consumption and horsepower
Don’t forget your personal taste in cars
Buying a car is usually something we do out of necessity, but that doesn’t mean we can’t take pleasure in it too.
To look for the right car, make a list of the things you want:
- Is there a specific make or model you prefer?
- What colour would you like it to be?
- What’s your favourite kind of vehicle: coupes, sports cars, SUVs, small city cars, or something else?
Should you buy a new or second-hand car?
Next, you need to think about the budget you can afford to spend on a car. This will have a major impact on which one you choose, what accessories it has, and for a second-hand car, how old it is and the mileage on it.
Take the time to weigh up the pros and cons of each option.
New cars have a number of advantages:
- You can customise the car you order.
- You’re protected by the manufacturer’s guarantee.
- You can have the latest technology in accessories.
But a new car costs more, and loses value quickly. The insurance you will need is also more expensive.
Good to know
A new car loses 20% of its value as soon as it’s driven off the forecourt.
A second-hand car is generally less expensive. It will also cost less to insure. However, these vehicles often need more frequent maintenance, especially if they already have a lot of kilometres on the clock. In addition, you can never be totally sure of their accident history.
One good way to make sure the car you’re buying is reliable is to get it from a professional dealer. In some cases, these vehicles will come with an extended warranty.
Get financing to buy a car
Beyond the cost of the vehicle itself, remember to account for other associated expenses:
- road tax
- tyres, etc.
Unless you can afford to pay out of pocket, buying a car means finding a financing solution with a bank.
BGL BNP Paribas offers two main ways of financing your vehicle purchase:
- With a car loan (1) you can afford to buy a car without touching your savings.
- With a private lease (2) granted in partnership with Arval Luxembourg, you can drive a new car long term.
If you’re not sure which solution is more suitable for your situation, don’t hesitate to get in touch with an advisor on (+352) 42 42 2000 Monday to Friday, 8.00 am to 6.00 pm. They will be happy to help choose the best financing option for you.
Government aid for buying a car
Certain types of vehicle are eligible for subsidies(5) from the Luxembourg government:
- €8,000 before tax for 100% electric cars or vans
Frequently asked questions
A private lease gives you more control over your budget. You have a fixed monthly payment that includes the price of the vehicle and associated costs like maintenance, insurance, tax and more (fuel is not included).
Car loans are for adult buyers with suitable borrowing capacity who want to obtain financing for a new or second-hand vehicle.
Find the solution that best suits your needs.
(1) For a loan of EUR 20,000 repayable over 48 months at a fixed interest rate of 5,80 % per annum, you will repay 48 instalments of EUR 468,80 (excluding optional insurance). No application fee. APR Fixed APR: 6,05 % per annum (subject to paying your salary into an “Essentiel” account held with our bank). Total amount due by the borrower: EUR 22.502,46.
The hypothetical example is provided for information purposes only and cannot be considered a loan offer and/or approval. The bank is not liable for this example or for any decisions made based on this example.
Offer subject to terms and conditions and approval of your application by the bank.
(2) Two or four-wheel vehicle with an electric or hybrid engine.
(3) Clients should provide a quote/invoice as evidence of their eco-friendly investment when the offer is finalised by their branch.
(4) Offer subject to conditions and approval of your application by BGL BNP Paribas and Arval Luxembourg S.A.; exclusive to residents of the Grand Duchy of Luxembourg. Services provided by Arval Luxembourg. Insurance, tyres, material damage cover, taxes and regular servicing included. Fuel not included.
(5) To find out more about the terms of the government’s financial aid, please visit the Myenergy.lu website.
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