car news

Taking out a loan for a car increasingly popular

February 23, 2023

You used to buy a car. At some point, leasing became an attractive alternative to spread costs. In the long run, however, leasing is not always the most economical option. Then a loan comes into the picture. More and more consumers are choosing this, it seems. According to comparison site Becam, the number of auto loans increased by nearly 11 percent over the past year.

Therefore, borrowing is becoming more common

The increasing number of car loans has everything to do with ever-rising prices. People have less left over at the end of the month and savings accounts are running out. On top of that, cars are rapidly becoming more expensive. On top of the general inflation, the purchase tax bpm is also just kept increasing. The average new price of cars sold in the Netherlands in 2022 was a whopping 43,072 euros. A sharp increase over previous years.

Moving out to the used market is a good alternative, but you’re not the only one to come up with that idea. So there, too, prices are rising. In 2021, you already spent an average of 21,376 euros for a used car in the Netherlands, and that amount has only continued to rise.

Two types of auto loans

There are basically two types of auto loans: a personal loan and a revolving credit. That first form is the most popular. This is because a personal loan has a fixed term and interest rate. So that gives additional certainty about future monthly payments.

Rising interest rates

It’s nice because interest rates are also rising again at a rapid pace. In the second quarter of 2022 the interest rate for a loan was still 3.45 percent, by the end of the year it was already 4.4 percent. Meanwhile, interest rates have already been raised further….

This is how high the average car loan is

Becam sees customers borrowing an average of 19,366 euros to buy a car in 2022. A big increase from 2021, when the average amount was 16,592 euros. That makes a difference of almost 17 percent.

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