After the Motor Show, there are always more used cars on the market. So now is the time to possibly do business. What should you pay attention to? And what about the financing of your ‘new’ acquisition? The second-hand car remains very popular in Belgium. More than half of all vehicles put on the road every year are second-hand. In particular, luxury brands such as Audi, BMW and Mercedes appear to be highly sought after.
The market for used cars
If you go on a bargain hunt, you should pay attention to a few things.
- Documents. Original sales invoice, certificate of conformity, the pink form ‘application for registration of a vehicle’, certificate of second-hand inspection (not older than two months) and the Car Pass.
- Identity check. Is the seller the owner of the car? Does the chassis number in the documents match that of the car? Also check the date on which any financing for the car ended.
- VAT or not? If you buy a second-hand car from a private individual, you do not pay VAT. If you buy a car from a garage owner, there are two options. If he has bought the car from a taxable person, he will charge 21 percent VAT on the full price. In that case, the VAT will appear separately on the invoice to stand. If the garage owner has bought the car from a private individual, he will only charge VAT on the margin and the VAT will not be stated on the invoice.
Financing a second-hand car
Some interest rates for a car loan on the occasion of the Motor Show 2018 still apply to new cars and, depending on the bank or other lender, to second-hand cars up to 2 or 3 years old. For example, Vibabank will maintain the rate up to and including 31 March 2018 and Credither up to and including 31 January 2018. In other words, it is best to start with a comparison exercise.
As you may know, nowadays you can find everything on the webpage of just about every financial service provider. So you only need a laptop and interconnection and you don’t have to leave the house for a long time. Moreover, there are also countless comparison websites.
A simulation seems difficult, but it is something very simple. It is a form where you can indicate how much you want to borrow and the period you want to pay off. Once that is done you will see an amount appear in real time that you have to pay back monthly. This way of searching takes only a few seconds per website, so before you know it you have done a dozen. If you look at the monthly amount to be paid, it also includes the costs that you have to pay. The total cost is expressed with the APR. The lower that percentage is, the less you have to pay. And that is the cheapest loan that is currently available.
Ensure comprehensive insurance
You can insure a second-hand car just like a new car fully comprehensive. For a new car, the ideal formula is comprehensive insurance at catalog value. This offers you the guarantee that you can buy the same car after a total loss or theft. For a recent one second-hand car you can consider a comprehensive insurance at invoice value to close.
Start your loan application here!