How to finance a car in Luxembourg: options and steps

In Luxembourg, a new or second-hand car can be financed with a standard car loan or, with Clicredit, a balloon loan for certain vehicles. The right choice depends on your budget, the term and the total cost. Compare the APR, the total amount payable and the terms and conditions before signing.

What are the options for financing a car in Luxembourg?

To finance a car in Luxembourg with Clicredit, the two main options to compare are the traditional financing and the balloon loan. The main difference between them lies in the way the capital is repaid and the amount of the monthly repayments over the term of the loan.

How does a standard car loan work?

Traditional financing usually takes the form of a instalment loan. The amount borrowed is repaid in monthly instalments over a fixed period.

At Clicredit, standard finance is available for new and used vehicles. The terms and conditions as at 13 August 2026 provide for a maximum term of 84 months for a new vehicle or a second-hand vehicle less than three years old, and from 60 months for a vehicle over three years old. These conditions must be re-validated at the time of publication or simulation.

Traditional financing is particularly suitable for buyers who want to know their repayment schedule from the outset and pay off their car in instalments.

How does a balloon loan work?

Balloon finance is a form of financing in which a larger proportion of the total amount remains to be paid on the final instalment. The regular monthly repayments are therefore lower than with a comparable standard repayment structure, but the final instalment is significantly higher.

According to the terms and conditions currently published by Clicredit, the balloon payment scheme applies to new or used vehicles that are a maximum of four years, with a duration of up to 60 months. The exact parameters of the residual value depend, amongst other things, on the age of the vehicle and the chosen term.

The terms and conditions of the finance may change. You should carry out an up-to-date simulation with Clicredit before making any decision.

Do you need a deposit to finance a car in Luxembourg?

A deposit is not compulsory at Clicredit : The loan can cover part or all of the vehicle’s purchase price.

However, a deposit can reduce the amount borrowed. All other things being equal, borrowing less also helps to limit the amount on which interest is calculated.

Trading in or selling your old car can also help to reduce the amount you need to finance. The aim, therefore, is not to make the largest possible deposit, but to strike a balance between your available savings and your motoring budget.

How do you choose the term of your car loan?

The term of the loan has a direct impact on the balance between monthly payment and total cost. For the same loan amount and on comparable terms, a longer repayment period generally reduces the monthly repayment, but spreads the repayment over a longer period and may increase the overall cost.

A low monthly repayment is therefore not enough to determine whether an offer is a good deal. Compare several loan terms by looking at the monthly repayment, the APR and the total amount payable at the same time.

The age of the vehicle is also a factor. At Clicredit, the maximum loan terms currently advertised differ between new or nearly new vehicles and used vehicles over three years old.

What should you compare before signing a car finance agreement?

When comparing two car finance deals, look first and foremost at the APR, the monthly repayment, the term, the total amount payable and the terms and conditions for early repayment.

The APR provides a broader picture of the cost of credit than the borrowing rate alone. The regulatory information provided before a consumer credit agreement is concluded must, in particular, enable the consumer to compare offers and make an informed decision.

A useful comparison must therefore answer five questions:

• How much would you like to borrow?
• How much will you pay each month?
• For how long?
• What will be the total amount refunded?
• What conditions apply if you wish to repay the loan early?

To find out which conditions apply to your project, please see the Car finance offered by Clicredit.

How do you work out a monthly repayment that suits your budget?

A suitable monthly repayment should take into account the entire motoring budget, and not just the repayment of the loan.

Start by working out how much of your monthly budget you can actually afford to spend on a car. Then deduct any other car-related expenses: insurance, fuel or charging, servicing, tyres and running costs.

This will give you a more realistic estimate of your monthly loan repayment. You should also leave enough of a buffer to cover any unexpected car-related expenses without throwing the rest of your budget out of balance.

Before making your final decision, do also bear in mind that Compare the key features of car insurance.

What are the steps involved in financing a car in Luxembourg?

Financing a car becomes easier when you tackle the process in the right order.

1. Set your overall motoring budget. Take into account the cost of the car and the regular running costs associated with it.
2. Choose a vehicle that suits this budget. Compare several models rather than basing your decision solely on a target monthly payment.
3. Work out the amount you need to finance. Subtract any deposit you may be making, or the amount used to reduce the remaining price.
4. Simulate several scenarios. Compare different loan terms and, where the vehicle is eligible, standard finance and balloon finance.
5. Compare the total cost. Check the APR, the term, the monthly repayment and the total amount payable.
6. Please submit your application. Clicredit offers an online application process followed by a financing proposal.
7. Finalise the file once it has been approved. The necessary supporting documents must be submitted before the contract is signed, in accordance with the procedure set out by Clicredit.

Credit is never granted automatically. The lender must assess the consumer’s creditworthiness before the contract is concluded.

What rights should you be aware of before signing a car loan agreement?

A car loan that falls within the scope of consumer credit is subject to rules designed to protect consumers in Luxembourg.

In particular, the consumer has a 14-calendar-day withdrawal period for the relevant consumer credit agreement. The starting point of the time limit depends on the date on which the agreement was concluded and the date on which the contractual information was received.

The consumer may also repay all or part of their loan before the scheduled due date. However, a penalty may apply in certain situations, depending in particular on the amount repaid, the type of interest rate and the remaining term.

To check which rules apply to your situation, please go directly to Guichet.lu on consumer credit and the CSSF on consumer credit agreements.

How can Luxauto help you find and finance your car?

Luxauto allows you to compare a wide range of vehicles and get a financing quote directly via the marketplace. Our platform tracks An average of 23,500 online vehicle adverts per month in 2026.

You could start by browse the cars available on Luxauto, then carry out a finance simulation for the vehicle you’re interested in.

Thanks to the Luxauto × Clicredit partnership, you can Calculate your monthly finance payments directly on the Luxauto website or in the Luxauto app. If you’d like to take things further, you can then submit a funding application to Clicredit.

Luxauto thus simplifies the process from searching for a vehicle to obtaining a financing quote, whilst Clicredit acts as a specialist credit intermediary.

Have you found a car that suits your budget? Use Clicredit to calculate your financing options via the Luxauto website or app and estimate the monthly repayments for your project.

FAQ

Is it possible to finance a car bought from a private individual in Luxembourg?

Yes. According to the terms and conditions currently published by Clicredit, finance may be available for a car purchased from a garage, a car dealer or a private individual, provided the seller is based in Luxembourg or Belgium. The terms and conditions are subject to a review of the application and the conditions applicable at the time of application. For purchases made in another country, such as Germany, Clicredit currently advises buyers to get in touch before submitting their application.

Can you finance 100 % of the price of a car with Clicredit?

Clicredit currently states that car finance can cover part or all of the vehicle’s price and that a deposit is not compulsory. However, a deposit is still an option and can reduce the amount you need to borrow. The choice between full financing and making a deposit therefore depends on your available savings, the cost of the loan and the budget you wish to set aside for other car-related expenses.

Can you finance a car’s options and extras?

Certain items of equipment may be included in the financed amount if they appear on the garage’s or dealership’s invoice. Clicredit specifically mentions optional extras or additional equipment as items that may be included in the vehicle finance. However, the items that can actually be financed depend on the invoice and the conditions applied when the application is assessed. It is therefore best to include them when calculating the required amount.

Is an application for car finance automatically approved?

No. Carrying out a simulation or submitting an application does not guarantee that you will be granted a loan. Before agreeing to a consumer loan, the lender must assess the consumer’s creditworthiness on the basis of sufficient information, including their income and current financial commitments. The final offer therefore depends on the assessment of the application and the lender’s terms and conditions. Luxauto facilitates access to the Clicredit process but does not grant the loan itself.

Can I use Clicredit to finance a car bought in Germany?

Clicredit currently states that its standard process applies to vehicles purchased from a seller based in Luxembourg or Belgium. For car purchases in Germany, Clicredit asks buyers to contact them directly to explore financing options. It is worth checking this before committing to a vehicle, as the terms may vary depending on the seller’s location and the structure of the purchase.