Comparison of Car Loan Rates in Luxembourg
Full rates updated in August 2026
Contents:
How do I choose a car loan in Luxembourg?
Find the best rate for your car loan
For a loan to buy a car in Luxembourg, rates can be double or even triple! What's more, they often change: most car loan rates have doubled as a result of the economic climate (inflation, rise in key interest rates).
If you're planning to buy a new car, we strongly advise you to compare rates before taking the plunge. You could save a lot of money on your loan.
Why take out a loan?
There are several reasons why you might want to take out a loan to buy a new vehicle:
- If you want to buy a new carIf you want to buy a new car, you'll have to spend a lot of money (€20,000, €30,000 or more) all at once. You can easily take out a loan with a bank to pay cash for the vehicle, and drive it from day one.
- For the purchase of a used vehicle : if you've fallen for a BMW, Audi, Porsche or other SUV, you'll have to pay a hefty sum, even if you buy second-hand. With a car loan, you can pay off your purchase over the long term.
- Credits can be deducted from your tax bill: yes, in Luxembourg you can deduct part of the interest expense from your tax return, up to a maximum of 672 per year. But be careful: if you have insurance for your car or home insurance that you wish to deduct from your tax, they will fall into the same category of tax deductions.
If you want to buy a new vehicle, So a car loan is a good way of avoiding having to pay a large sum all at once. But there is a cost: you will have to pay interest to the bank. That's why it's important to compare interest rates carefully before taking out a loan.
Are car loans more expensive in Luxembourg?
In Luxembourg, the average rate for a loan varies much more than in neighbouring countries (France, Belgium, Germany). However, it is not particularly lower or higher: it all depends on the time of year and the economic climate.
Credit or leasing: which to choose?
There is a major difference between a car loan and a lease. If you take out a loan, you are the owner of the vehicle. If you take out a lease, you rent the vehicle: you sign a rental contract. Here are the main differences:
- Car loan: you own the vehicle
- You sign the vehicle purchase
- No input required
- You can drive as much as you like
- You are responsible for all maintenance costs
- You repay your loan every month
- You retain ownership of the vehicle once all your monthly repayments have been made
- Leasing: you lease the car
- You sign a leasing contract
- You generally need to make a down payment to reduce the monthly instalments.
- Your mileage is limited each year
- Maintenance costs are covered by the manufacturer
- You pay rent every month
- At the end of the leasing contract, you must return the vehicle in perfect condition. If you wish to buy it back, you will have to pay a substantial sum.
In the end, it all depends on what you want and how you use the vehicle:
If you want a car for more than 3 or 4 yearsIn that case, it will be more profitable for you to take out a loan and buy your car.
If you like to change your car every 2 or 3 yearsIf you love driving the latest models, even if it means paying more, then leasing is for you.
Which car loan to take out to buy a Tesla (or other electric car)?
In Luxembourg, you can benefit from bonus for the purchase of an electric car. What's more, if you want to buy the latest Tesla, Volkswagen ID, Audi e-tron, BMW i3 or i4, don't forget to tell your bank. They'll be able to offer you reduced interest rates dedicated to green projects. As a result, the cost of your credit will be lower than if you were to buy a combustion car (petrol or diesel) at the same price.
All car loan offers in August 2026
| Car credit | Rates | Description of the offer |
|---|---|---|
| BGL BNP Paribas Car credit See the offer | 4,54% | - Reduced rate for electric vehicles - Loans of up to €75,000 for 12 to 60 months - Online loan application |
| Raiffeisen Car credit See the offer | 4,59% | - Reduced rate for electric vehicles - Attractive fixed rate - Tax deductibility of interest expense |
| Spuerkeess Car credit See the offer | 5,40% | - Reduced rate for electric vehicles - Low rates for Zebra Premium customers - Online loan application |
| BIL Car credit See the offer | 5,48% | - Reduced rate for electric vehicles - Special rate for young people under 30 - Tax deductions on interest expense |
Frequently Asked Questions (FAQ)
What credit rate should I use to buy a car?
Interest rates for car loans vary regularly in Luxembourg, depending on the economic climate (for example, they have risen from 2% to over 4 or 5% in recent years).
We advise you to consult our selection of offers regularly to find the best rates.
Which bank for a car loan?
BIL, BGL, Raiffeisen and Spuerkeess all offer car loans. They offer very attractive rates for their customers and for young people under 30.
What is the lowest rate for a car loan?
The lowest rates for a car loan vary widely. And more, they are generally reserved for particularly solvent profiles. If you have a good financial situation, a stable job and a low level of debt, you could benefit. Take a look at the selection of offers above to find the best car loan deal for you.
How can I take out a car loan without a permanent contract?
If you are on a fixed-term contract, work-linked training scheme, unemployed or self-employed, apply for a loan and ask the bank for advice.
Depending on your situation and your financial contribution, it will be able to find a solution to grant you a loan with sufficient guarantees.
How can I obtain a car loan easily?
All you have to do is apply for a car loan online with the bank offering the best rate. The bank adviser will then contact you to sign the loan and release the funds. You'll be able to buy your car quickly!
How do you calculate your car loan?
Here is the formula for calculating the cost of your car loan:
cost of credit = monthly instalments x term of loan - amount borrowed You can also simulate your car loan using the "car loan calculator" of the bank of your choice. Almost all banks in Luxembourg have a tool that allows you to simulate the cost of your credit, or at least the monthly repayments.
What term should I choose for a car loan?
Car loans generally run from 12 to 60 months, i.e. from one year to 5 years. How long you choose depends on the amount you borrow and your income.
Tip: run a simulation with the bank of your choiceThen choose the loan term based on the monthly payment that suits you best.
The shorter your loan, the cheaper it will be, but the higher your monthly repayments! The best term depends above all on your financial situation and your current level of debt.
How do I get a car loan?
To obtain a car loan, simply apply to the bank of your choice. Start by comparing the offers on our comparison table, then go directly to the website of the bank of your choice.
The bank adviser will then ask you for some information and supporting documents (such as your employment contract, pay slips and proof of identity) in order to draw up your loan contract.
If you're looking to change bank, you could also benefit from a welcome offer!