As part of the “Week of Money”, Wikifin has done a study on the vast subject of credits. The big conclusion? People with high incomes are those who borrow the most, usually for a mortgage loan, a new vehicle loan or a work credit.
Loans in constant increase
Every year, the ” Week of Money ” is talked about in Belgium. On the occasion of this new edition, Wikifin, the financial education program of the FSMA (authority of services and financial markets), conducted a survey on loans, relayed by L’Echo. It shows that two thirds of Belgians have already contracted a loan, regardless of purpose. And it is among those with a monthly salary of more than 3,000 € that this figure is the highest, reaching 79%, against 49% of Belgians in general.
But mortgage credit is not the only popular loan. In fact, auto loans are closely following him, reaching 37%, and continuing to grow (+ 14% since 2013). But it is worth wondering why this constant increase. And the answer is simple: rates below 1% are so advantageous that it is also interesting for the well-to-do (> 3,000 € / month) to take a new vehicle loan. As a result, more (44%) opt for this means of financing when buying their vehicle, compared to only 25% of lower income households.
To this increase in the number of loans is added that of the amount financed: in 2017, the Belgians on average borrowed € 2,738 more than in 2015. And these figures vary according to the age of the car. Indeed, the bill of a used car over three years amounted to nearly 9,900 €, against about 17,500 € for a second hand of less than two years and slightly more than 19,000 € for a brand new model. Credits for car and motorcycle combined, the monthly repayment amounted on average, according to Wikifin, to 463 €.
New classic vehicle loan
This is a form of installment loan. This implies that three elements are predetermined: the amount of the monthly repayment, the duration of the loan and the interest rate. APRs vary according to several factors:
- Age of the car : new cars benefit from a lower rate. Vehicles of two or three years are often considered as such. Belfius and CBC / KBC, for example, offer a rate of 0.85% for a new car, but 2.95% (CBC / KBC) or 3.90% (Belfius) for a model over 3 years. A famous difference.
- CO² emissions : Some financial institutions provide loans at attractive interest rates when the car is environmentally friendly.
- Percentage of borrowing : Banks sometimes allow buyers to borrow more than the purchase amount, which can be up to 120% of the purchase price. This makes it possible to cover, among other things, the insurance, the circulation tax, the driving tax, etc.
In view of the numerous financing possibilities and differences, sometimes significant, between credit providers, it is essential to compare all the offers on the Belgian market. As the famous saying goes: “There is no point in running, everything comes to those who wait.” And even “who knows how to compare”. Do not wait a minute longer, and make a comparison of the cheapest car loans.