For several years now, Beobank has systematically drawn the best rate on the market the day before the opening of the Motor Show. The 2023 edition will be no exception since this bank will finance, from Monday 16 January 2023, a new vehicle at an annual percentage rate of charge (APR) of 2.49% (against 3.40%), which will make it the lowest rate offered this year.
For example, for a loan of 20,800 euros (repayable in 5 years), the monthly payments amount to 368.79 euros, i.e. a total amount to be repaid of 22,127.40 euros, including 1,327.40 euros in interest.
But unlike previous years, this rate will be exclusively reserved for the financing of ecological vehicles (electric or hybrid). Indeed, until now, Beobank applied one and the same promotional rate, and this, regardless of the motorization of the vehicle to be financed.
This rate was also applied to vehicles less than 2 years old (and therefore not exclusively to new vehicles).
That said, for all new or used vehicles less than 2 years old, regardless of the engine (classic), the rate offered by Beobank for a car loan amounts to 2.99% (until February 28, 2023).
More expensive credit
As a reminder, last yearthe rate offered by Beobank was only 0.59%, which at the time was a historically low rate. Short, auto credit at less than 1%, it’s over!
“Interest rates for all loans have risen sharply in recent months due to the sharp rise in market interest rates.”
“Interest rates for all loans have risen sharply in recent months due to the sharp rise in market interest rates,” said KBC spokesman Pieter Kussé. “So it’s not just for car loans, but it’s felt for all uses.”
“A further increase is planned for 2023but it is not possible to give a precise limit,” he added. Experts from Argenta Bank agree and expect interest rates for installment loans increase further during the year 2023. “For customers, the time therefore remains ideal to take out financing,” specifies Mieke Winne, its spokesperson.
Therefore, if you are considering taking out an auto loan from a bank, “ask him how long the rate will be valid, because in some cases the cars will not be delivered and paid for until several months after the order is placed“, advise the experts of the platform Guide-savings.be.
Sometimes manufacturers offer financing at the rate of 0%. Gold, credit is never free. Opting for such a loan means taking the risk of not being entitled to an additional reduction on the purchase price or of not receiving certain equipment.
Others also offer credit offers with a rate lower than that offered by the banks. Please read the fine print carefully, as this may be a balloon credit offer, that is to say, a credit offer close to rental with a purchase option at the end of the contract.
This can correspond, for example, to the reimbursement of a fixed monthly payment of 159 euros for 35 months, then a final much higher monthly payment of 9,085 euros… At this point, the dealer can possibly take the vehicle back from you. . But beware, if the condition of the car is not satisfactory, he may refuse to do so. It is therefore a famous financial risk to take.
It also happens that the situation is reversed and that the manufacturer asks you for a deposit of several thousand euros (usually 30% of the purchase price).