Comparison of the best car loans in Luxembourg

Save on your car loan with our selection of car loans.
Independent 100% analysis.
ING Luxembourg
5.12%
ING Luxembourg
✔️ 100000€ max.
See the offer
Raiffeisen
5.90%
Raiffeisen
✔️ 50000€ max.
See the offer
Spuerkeess
5.99%
Spuerkeess
✔️ 100000€ max.
✔️ Rate reduction under 30 years old and Zebra Premium account holder
See the offer
The rates may vary according to your profile, your project and your financial situation.
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Our tips for choosing the best car loan

How to choose a car loan in Luxembourg?

Find the best rate for your car loan

For a loan to buy a car in Luxembourg, the rates can go from simple to double... even triple! What's more, they often change: most car loan rates have doubled due to the economic situation (inflation, rise in key rates).

If you are planning to buy a new car, we strongly advise you to compare car loan rates before you start. You can save a lot of money on your loan.

Why take out a loan?

There are several reasons why you might want to borrow money to buy a new car:

  1. If you want to buy a new carIf you want to buy a new car, you will have to spend a lot of money (€20,000, €30,000 or more) at once. You can easily take out a loan with a bank to pay cash for this vehicle, and drive it from day one.
  2. For the purchase of a used vehicle : If you've fallen for a BMW, Audi, Porsche or any other SUV, you'll have to pay a hefty sum, even if you buy second-hand. With a car loan, you can pay off this purchase in the long term.
  3. Because the credits can be deducted from your taxes: Yes, in Luxembourg you can deduct part of the interest expense from your tax return, up to a maximum of 672 per year. Be careful, however: if you have car insurance or home insurance that you wish to deduct from your taxes, they will fall into the same category of tax deductions. 

If you want to buy a new vehicle, The car loan is therefore a good solution to avoid having to pay a large sum at once. However, this comes at a cost: you will have to pay interest to the bank. That's why it's important to compare interest rates before signing a car loan.

Which bank to choose in Luxembourg?
Discover our selection of offers and find the best bank!
See the Banks comparator
How to change bank in Luxembourg - Switchr

Are car loans more expensive in Luxembourg?

In Luxembourg, the average loan rate varies much more than in neighbouring countries (France, Belgium, Germany). Nevertheless, it is not particularly lower or higher: it all depends on the time of year and the economic situation.

Credit or leasing: what to choose?

There is a major difference between a car loan and a lease. If you take out a loan, you own 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 purchase of the vehicle
    • No input required
    • You can drive as much as you like
    • You are responsible for the maintenance costs
    • You pay back your loan every month
    • You retain ownership of the vehicle after all your monthly payments have been made
  • Leasing: you rent the car
    • You sign a rental contract (or 'leasing contract')
    • You usually have to provide a deposit to reduce the monthly payments
    • 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 like to change your car every 2 or 3 yearsIf you like to drive the latest models even if it means paying more, then leasing is for you.
  • If you want a car for more than 3 or 4 yearsIn this case it will be more profitable for you to take out a loan and buy your car.
Should you really buy your car?
Are you hesitating between a loan and a lease for the purchase of your vehicle? Read our advice.
Read the article
Car loan leasing luxembourg what to choose

What kind of car loan for an electric car (Tesla, i4, e-tron...)?

In Luxembourg, you can benefit froma bonus for the purchase of an electric car. And 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 will be able to offer you reduced interest rates that are dedicated to green projects. This means that the cost of your credit will be lower than if you were to buy a combustion car (petrol, diesel) at an equivalent price.

Frequently Asked Questions (FAQ)

What credit rate to buy a car?

Interest rates for car loans vary regularly in Luxembourg, depending on the economic context. We advise you to regularly consult our selection of offers to find the best rates.

Which bank for a car loan?

The banks BIL, BGL, Raiffeisen, ING and Spuerkeess 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 can be found between 2% and 3%. However, these rates are reserved for particularly creditworthy people. If you have a good financial situation, a stable job, and low debt, you could benefit.

How can I get a car loan without a permanent contract?

If you are on a fixed-term contract, on work experience, unemployed or self-employed, apply for a loan and ask the bank for advice. Depending on your situation, they will be able to find a solution to grant you a loan with sufficient guarantees.

How to obtain a car loan easily?

Simply apply for a car loan online with the bank that offers the best rate. The bank advisor will then contact you to sign the loan and release the funds. You can buy your car quickly!

How to calculate your car loan?

Here is the formula to calculate the cost of your car loan: cost of credit = monthly instalments x loan period - amount borrowed

You can also simulate a car loan via 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 payments.

What term should I choose for a car loan?

Car loans generally run from 12 to 60 months, i.e. from one year to five years. How long you choose depends on the amount you borrow and your income. A tip: do a simulation with the bank of your choice, and choose the duration of the loan according to the monthly payment that suits you best. The shorter your loan, the cheaper it will be, but the higher your monthly payments will be! The best term depends above all on your financial situation and your current level of debt.

How to obtain a car loan?

To get a car loan, simply apply to the bank of your choice. Start by comparing car loan offers on our comparison table, then go directly to the website of the bank of your choice. The bank advisor will then ask you for some information and proof (such as your employment contract, pay slips and proof of identity) in order to draw up your loan contract.

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