{"type":"document","data":{"id":"54b1e950-91c6-4725-95c9-971e4701ceda","localeString":"en-GB","publishDate":"2024-11-27T17:54:15.303+01:00","contentType":"onecms:editorialPage","hasMacro":false,"flexPageMetadata":{"afmBanner":false,"robotInstruction":{"noIndex":false,"noFollow":false},"description":"We give you different methods, whilst explaining the pitfalls to avoid!"},"mainHeaderZone":{"componentType":"editorialHeader","coreHeader":{"title":"Is a 0% rate at your car dealership an interesting financing option?","subtitle":"We'll give you different methods, whilst explaining the pitfalls to avoid!"},"backLink":{"textLink":{"url":"/en/individuals/my-life/mobility","text":"Mobility"}},"date":"2023-08-22","readingTime":7},"flexZone":{"flexComponents":[{"componentType":"sectionTitle","title":"Financing a new car: what are the options?"},{"componentType":"paragraph","richBody":{"value":"

Using your savings or getting a loan? Which loan to choose? Borrowing from a bank or a car dealer?

"}},{"componentType":"paragraph","title":"Loan or savings?","richBody":{"value":"

Given the low interest rates, a loan can be advantageous for buying a new car. But low interest rates also mean that your money left on your savings account will not yield very much. The choice between taking a loan or using your savings will depend on your financial situation and your needs.

"}},{"componentType":"paragraph","title":"Car loan","richBody":{"value":"

The classic car loan is very popular because of its attractive interest rates. The loan being justified by the purchase of a car, this constitutes a guarantee for the bank. The latter can then offer more competitive rates compared to a personal loan without a defined purpose. Once the bank accepts your application (containing the proof of purchase), you will receive the funds, to be reimbursed by fixed and equal monthly installments (representing interest and capital) throughout the loan duration. Some banks also allow you to borrow more than 100% of the car price to cover insurance, road taxes, etc.

"}},{"componentType":"paragraph","title":"Car dealers’ loans","richBody":{"value":"

Some car dealers also offer car loans. They are well known to offer lower rates than the banks, sometimes as low as 0% rates. But is this really the best solution?

"}},{"componentType":"highlight","richBody":{"value":"

Good to know: Eco-friendly cars can benefit from special rates, in terms of loans, insurance and taxation.

"}},{"componentType":"sectionTitle","title":"0% Car loan: what is it?"},{"componentType":"paragraph","richBody":{"value":"

Some car dealers offer very low interest rates to finance your new car purchase, sometimes as low as 0%. This financing method can sound interesting at first, because you will only have to reimburse the capital without any additional interest to pay. But is this really the case? Never forget that borrowing money also costs money, even when you think you are being offered “free” financing. Here, we explore the “hidden” costs that can be associated with a 0% loan.

"}},{"componentType":"sectionTitle","title":"A concrete example"},{"componentType":"paragraph","richBody":{"value":"

Let’s take the example of a 15,000 € new car and compare loans and discounts.

A car loan at 1,75% over 36 months represents a total credit cost of 404.76 €. If you opt for the 0% loan offered by the car dealer, your gain will be 404.76 €. You will probably not receive further discounts on the vehicle.

The discount the car dealer can offer you generally varies between 3% and 19% of the purchase price. On 15,000 € this will represent a minimum of 450 € (3%) and a maximum of 2,850 € (19%). The discounts will in any case save you more than if you opted for the 0% loan.

Contrary to what one might think, a 0% car loan is thus not without expenses. Do not rely on appearances and calculate your potential gains and shortfalls before choosing your financing method.

"}},{"componentType":"sectionTitle","title":"Want to know more?"},{"componentType":"paragraph","richBody":{"value":"

Discover our car loan. 

Your new car deserves the best protection. Discover the advantages of our ING Car Insurance (insurer NN Non-Life).

Article written in association with TopCompare.

"}}]},"complementaryZone":{"flexComponents":[{"componentType":"sectionTitle","title":"Also interesting!"},{"componentType":"cards","cards":[{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Car loan","intro":"Installment loan to help finance your new or 2nd hand car.","image":{"transformBaseUrl":"https://assets.ing.com/transform/4efb165a-121f-4084-a91c-55198d0db8b7/Man-and-woman-in-a-car","type":"image","width":1920,"original":"https://assets.ing.com/m/773d916fca9c9aee/original/Man-and-woman-in-a-car.jpg","extension":"jpg"},"link":{"url":"/en/individuals/borrowing/car-loan"}},{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"Check-list for buying a car","body":"New or second hand? Petrol, diesel or electric? We give you some useful tips to consider.","image":{"transformBaseUrl":"https://assets.ing.com/transform/958b0864-458c-4af1-848a-4b2e46170541/first-car-1920","type":"image","width":1920,"original":"https://assets.ing.com/m/bf3aa28fcc1f00/original/first-car-1920.jpg","extension":"jpg"},"date":"2025-07-02","link":{"url":"/en/individuals/my-life/mobility/buying-first-car"}},{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Car Insurance","intro":"Insurer : NN Non-life","image":{"transformBaseUrl":"https://assets.ing.com/transform/50672da5-7e85-4636-85e5-137f3a6bc522/Family-takes-group-selfie-in-car-during-road-trip","type":"image","width":4500,"altTextEN":"\"\"","altTextNL":"\"\"","altTextFR":"\"\"","altTextDE":"\"\"","original":"https://assets.ing.com/m/5ecc05f4d8ea2753/original/Family-takes-group-selfie-in-car-during-road-trip.jpg","extension":"jpg"},"link":{"url":"/en/individuals/insurance/insure-my-car/car-insurance"}},{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"Our tips to find cheap car insurance","body":"The price of your car insurance depends on several characteristics. Which ones exactly and when you have to pay more or less, you can discover here.","image":{"transformBaseUrl":"https://assets.ing.com/transform/2110ed7d-347a-4bbc-ab02-969ce8f24598/Close-up-rear-view-of-hands-on-car-head-rest","type":"image","width":5616,"original":"https://assets.ing.com/m/ad3e6f2adbb8dc4/original/Close-up-rear-view-of-hands-on-car-head-rest.jpg","extension":"jpg"},"date":"2023-08-18","link":{"url":"/fr/particuliers/assurer/assurer-ma-voiture/payer-son-assurance-auto-moins-cher"}},{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"What is the bonus-malus system?","body":"While the term bonus-malus is still widespread, it is no longer used at ING. We now speak of \"claim-free years\".","image":{"transformBaseUrl":"https://assets.ing.com/transform/4d6fb0a6-f033-491b-b1a3-ac90db6c8708/Man-hugs-car-in-garage-showroom","type":"image","width":5130,"original":"https://assets.ing.com/m/25534a5c70973a60/original/Man-hugs-car-in-garage-showroom.jpg","extension":"jpg"},"date":"2023-08-18","link":{"url":"/en/individuals/insurance/insure-my-car/bonus-malus"}},{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"The driver insurance option: what’s it really for?","body":"Driver's insurance is not compulsory, but it ensures that you can count on compensation as a driver even when you yourself are at fault in an accident.","image":{"transformBaseUrl":"https://assets.ing.com/transform/c4ec4a21-be1a-4d1b-94b0-a5767eeba2ee/Dog-seated-in-car-driver-seat","type":"image","width":4096,"altTextEN":"\"\"","altTextNL":"\"\"","altTextFR":"\"\"","altTextDE":"\"\"","original":"https://assets.ing.com/m/ab80c8ffd391821/original/Dog-seated-in-car-driver-seat.jpg","extension":"jpg"},"date":"2023-07-17","link":{"url":"/en/individuals/insurance/insure-my-car/driver-insurance"}}]}]},"legalZone":{"flexComponents":[{"componentType":"sectionTitle","title":"Attention, borrowing money also costs money."},{"componentType":"paragraph","richBody":{"value":"

Annual rate (in force on 19 January 2015), variable subject to notice prior to the conclusion of the contract) valid for any ING Car Loan taken out for a new vehicle or second-hand vehicle less than 2 years old (subject to acceptance of your fi le by ING Belgium and to mutual agreement). A concrete example let us say that you take out an ING Car loan for an amount of 15,000 euros (average amount granted by ING for this type of loan) for a term of 48 months. With a (fixed) ACP of 1,95% ((fixed) debit interest rate) of 1,95% per annum, you will repay 324,98 euros a month (i.e. a total of 15.599,04 euros after 48 months). For any other credit amount or term, please enquire at your ING branch.

An ING Car Loan is an instalment loan for private purposes. Offer reserved for private individuals who are of age and subject to acceptance of your fi le by ING Belgium and to mutual agreement. The general terms and conditions of the loan are available from any ING branch.

Your application and its possible acceptance by ING Belgium (after examination of your fi le by ING Belgium) at a branch or on ing.be do not bind ING Belgium or you as long as you have not signed the loan contract at your ING branch (subject to prior acceptance of your fi le by ING), where the details communicated in connection with the application will have been first checked for accuracy and completeness (in particular on the basis of documents provided or yet to be provided).

In the case of online applications: answer within 48h. In the case of applications via Home’Bank: immediate answer during the opening hours of the National

"}}]}}}