According to figures from the financial services industry federation Febelfin, the average loan for a new car in Belgium is currently 23,750 euro. This is more than 50% more than the average amount borrowed in order to buy a car 10 years ago. The amount borrowed to buy a second-hand cars also risen sharply.
Belgians that took out loan for a new car in the second quarter of this year borrowed an average of 23,750 euro. This represents an increase of 8,250 euro (more than 53%) in 10 years. A decade ago in the second quarter of 2015, the average amount borrowed for the purchase of a new car was around 15,500 euro.
Febelfin’s Isabelle Marchand says that “We have observed that consumers have been borrowing increasingly more money for both new and second-hand cars in recent years”’ says Isabelle Marchand. Ten years ago, consumers borrowed an average of 10,900 euro when purchasing a second-hand car, whereas today the average is 17,550 euro, an increase of over 6,650 euro.
The reason for this increase is that car prices have risen in recent years. However, we are also seeing more and more “green” vehicles on our roads with more and more people buying electric cars. Electric cars are more expensive than petrol/diesel vehicles.
The fact that never before has so much money been borrowed to buy a car does not mean that more and more Belgians are taking out loans to buy them. “Cars have long been a typical product for which Belgian consumers take out loans. This is because the purchase price is quite high”, Isabelle Marchand said. In most cases perople spread the cost of a new car 4 or 5 years. For a second-hand car the loan is is usually for a shorter period.