Looking for a car loan?
- Have up to 12 months to draw down your loan
- Work out your loan online (90% of our customers apply for their loan digitally)
- Even if you’re not yet a customer with us
New car* |
Second-hand car*
|
Electric car* |
| Calculate at 4.49%%* | Calculate at 3.29% |
* Representative example new car loan
* Representative example loan for a second-hand car
* Representative example loan for an electric car
Should you borrow from your bank or get an interest-free* loan from your car dealer?
During promotional periods, car dealers advertise interest-free car loans. It might seems like a dream deal at first glance, but there may be a catch or two: perhaps there’s no extended warranty, it turns out you have to pay extra processing fees, or you may not be able to negotiate any other discounts. That’s why you should always look at the other terms and conditions rather than just comparing interest rates. You can read about how to do that in the article below:
*Consider this example before buying a car with an interest-free loan
The cost of a new car can easily reach 20 000 euros. If you take out a loan at an interest rate of 3.49% to buy it, you’ll pay 698 euros in interest over 36 months, which means you’ll save 698 euros if you opt for interest-free loan. But as mentioned above, the chances of getting any additional discounts are slim. You should definitely look into this, because dealers often offer discounts of 3 to 19%. In this example, that would amount to a discount of between 600 and 3 800 euros. In other words, you may be saving money when you opt for a standard car loan.
More on a car loan
The best term for you depends on how much you want to borrow and how much you can afford to pay back each month. The longer the term, the less you'll have to pay each month and the easier it will be to pay off the loan. The shorter the term of your loan, the more you'll have to pay each month, but you'll pay it off sooner and also end up paying less interest. At KBC Brussels, you choose what you prefer to do.
There are a few legal constraints that apply to the term of a loan (these are automatically built into the loan calculator).
| Amount borrowed (in euros) |
Maximum term (in months) |
|---|---|
| Up to 2,500 | 24 |
| Up to 3,700 | 30 |
| Up to 5,600 | 36 |
| Up to 7,500 | 42 |
| Up to 10,000 | 48 |
| Up to 15,000 | 60 |
| Up to 50,000 |
72** |
** only for cars not more than three years old
A new car quickly depreciates in value, so we recommend keeping the term of your loan as short as possible. As a novice driver, it's often the case that you haven't taken out any other loans, but you are more at risk statistically of damaging or writing off your vehicle in an accident. It's worth remembering that, while you've lost your car in this scenario, you will have to continue paying off your loan. You can, however, limit that risk by taking out comprehensive insurance at KBC Brussels.
When you declare your work-related expenses, you can claim the interest on your car loan against your tax.
Your car loan will be paid to you:
- When your car is delivered
- After KBC Brussels receives the relevant signed documents and proof of investment (order form or invoice)
- By crediting the account from which your monthly repayments will be made
You start paying off your car loan one month after it is paid to you. All subsequent payments are made on the same day of the month on which you made the initial repayment.
Example illustrating when repayment is to made
Suppose KBC Brussels makes your loan available to you on 25 March. You will then start repaying your loan on 25 April, with all subsequent repayments scheduled for the 25th of the month.
Account for repaying the loan
If you already have a current account at KBC Brussels, you can repay your loan from that account provided you're the sole or joint holder of the account.
The account for repaying the loan must be the same as the one into which the loan was paid.
If you don't have an account at KBC Brussels, you can also pay off your loan by direct debit from the account you hold at another financial institution.
We’ll be happy to help. Our web page on how to go about selling your car provides a list of tips and things to remember, such as a model contract of sale.
Our KBC Brussels Touch and KBC Brussels Mobile apps let you easily work out and apply for your car loan. You get the same low interest rate as you would at our branches.