Dutch consumers are borrowing more and more for a car, but of course no one in the comment section.
Cars are expensive. Very very expensive. They are often unaffordable when new and even a decent used car costs a fortune. Cars are so expensive that we all have to borrow money en masse to be able to buy a car.
They did a little research at Independer and it turned out that we only started borrowing more. On average, the Dutch person’s loan amount in 2022 was still 14,471 euros. Solid, but in 2024 that will have risen to 16,334 euros! By far the most common reason for borrowing money is very car-related. This concerns the purchase of – you’ll never guess – a car!
Dutch Consumers borrow more
About half of all loan applications are for the purchase of a car. On average, we Dutch borrow 15,665 euros for a car. That amount is also considerably higher than two years ago, when the loan amount was 13,415 euros.
The reason is quite simple, according to the researchers. This is because of the increased BPM. Although this is levied on new cars, there is also a tax on used cars, the so-called residual BPM. As long as it continues to rise, people will have to borrow more.
It’s not just the increased BPM
Is that the government’s fault? Well, it’s actually the borrower’s fault. The taxes should have a deterrent effect so that consumers will buy a cleaner vehicle. Or none. However, we are happy to borrow money to buy a bigger car.
Furthermore, higher wages, inflation and increased prices for parts cause higher prices and loan amounts.
It is not said, but it is of course crazy to borrow so much for a car. As my Electrical Engineering teacher always said: you should not borrow for a Porsche, but save for a Toyota. That will ultimately make you richer.
Who borrows the most? And the least?
Then you now also want to know in which province the most loans are made. These are people from Flevoland, where the average loan amount is 18,679 euros, perfect for a white CLA with black wheels and four exhausts. Groningen residents are at number 2 with 18,023 euros, but that probably involves a few renovations.
What is special is that Zeelanders live up to their reputation. They borrow by far the least for their car: only 13,000 euros. This is partly due to our Zeeland colleague @machielvdd, who has never borrowed a cent in his life but does save two-seater roadsters.
Photo credit: beautiful red C63 that we would also like to borrow from @ecnerualcars via Car Whiz Spots!
Read more? This is what you need to know if you want to finance your used car!
