Looking to look at your Tesla, Porsche, Volkswagen, BMW or Hyundai in Luxembourg? Charging stations, power, price... We explain it all to you!
Do you want a new car in Luxembourg but are hesitating between a loan or a lease? We can help you find the right solution!
In Luxembourg, there are many rental offers. Most companies also offer discounted long-term rental for their employees. But the car loan also offers very interesting advantagesIn particular from a fiscal point of view. The best solution will depend on your wishes and your travel habits.
A car loan is a loan that is intended for the purchase of a new car. It is a loan that you take out with your bank over a period of 1 to 5 years. The bank will release a sum of money for you to buy the car, and you will have to make monthly repayments.
Here are the advantages of a car loan:
A car loan is an excellent solution if you drive a lot and exceed 15,000km per year (as this is usually the package included in long-term rental contracts).
You may be in this situation if :
In view of the current situation and the chip shortage weighing on new vehicle productionIf you have a car, you may have to buy a second-hand car. In this case, you will have to take out a loan.
Finally, you should know that buying a car is particularly suitable for people who do not particularly need to change their vehicle often. If, on the other hand, you like to change your car every 2 or 3 years, you should opt for a lease.
In Luxembourg, all banks offer car loans, but their rates vary greatly. There are different parameters that come into play when you want to find the cheapest loan:
Leasing is a contract for the rental of a car. Unlike a car loan, you are not the owner of the vehicle: you sign a lease contract that gives you the right to use the vehicle for a fixed period of time.
However, at the end of the contract you must return the car in perfect condition. You may be charged for any damage to the bodywork or interior of the vehicle. However, you have the option of buying the car back at the end of your lease.
Long-term rental is an interesting choice if :
However, this option will cost you more than a loan. The companies that offer long-term rental in Luxembourg make a profit on this activity. They therefore pass on their margin on each rental contract. And this margin is generally higher than the rate for a loan taken out with a Luxembourg bank.
The price of a long-term rental varies greatly depending on the demand, the car model and the duration chosen. For example, Tesla rentals will be quite expensive, as there are few models available and they are in high demand in Luxembourg.
At the time of writing, for example, there are almost 700 per month to lease a Tesla Model Y over 4 yearswith 15000km included.
There are two options, depending on your situation:
The electric car is becoming more and more popular in Luxembourg: there are more charging points to recharge your vehicle, and a bonus of €8,000 makes it easy to finance your new Tesla, Hyundai or BMW.
Nevertheless, the electric car is a very special case: the technology is evolving very quickly, the batteries are improving and the range is increasing every year. It is therefore tempting to ask whether it is worth buying an electric car, or whether it is better to lease it while waiting for a better model.
In the particular case of electric cars, we recommend buying a model that is a safe bet (such as a Tesla Model 3, Tesla Model Y, Audi e-Tron, or BMW i3).
The innovation lies mainly in the software of the on-board computers which are regularly updated by the car manufacturers. And if one day a new battery technology makes it possible to reach exceptional autonomies (such as 1500km), the manufacturers will surely offer you a replacement for your vehicle's battery.
However, if you are not sure of your choice, we advise you to rent your electric car. This way you can discover this new way of driving without pressure or constraints. On the other hand, you will no longer be able to claim your €8,000 environmental bonus.
So think carefully before making your choice!
In conclusion, the car loan is preferable if you drive more than 15,000 km per year and you intend to keep your car for several years. It is compulsory if you buy a second-hand car, as leasing companies mainly offer new models.
On the other hand, If you don't drive much and want to drive new cars every 3 to 5 years, lease your car. You will not have to pay any maintenance costs, but you will have to pay higher monthly payments than with a car loan. The advantage is that you can buy the car back at the end of the lease period - for a small additional fee.
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