Car Loan

What are the actual costs of buying and owning a car? – Car loans

Owning a car is expensive. Yet only about one-fifth of all car owners are well aware of the monthly costs. This appears from a Consumer Association survey among 7000 people.

The vast majority of car drivers (87 percent) prefer to buy their own car than to opt for leasing. More than half of them prefer an occasion for a new car.

But what does a car actually cost on average per month, what should you pay attention to when purchasing and how do you best finance a car if you do not have enough savings yourself? In this article, we put it all at a glance.

What does a car cost per month?


Before you buy a car, it is good to take the following monthly costs into account:

  • Second-hand or new? Occasions are cheaper to use than new cars. With an occasion you have fewer depreciation costs than with a new car; after all, most depreciation takes place during the first few years.
  • Maintenance, service, tires, and repairs. These costs are of course higher for a second-hand car, but still do not outweigh the depreciation costs. In other words: a brand new car is worth less quickly than what you have to spend on the rising maintenance costs of an occasion. An example: small/compact cars or medium-sized cars of around 3 to 6 years old cost about 25% to 30% less than a newly purchased car after 3 years of use.
  • Number of kilometers driven. The more kilometers on the counter, the more your car decreases in value.
  • Fuel costs. These depend on your consumption and the gasoline or diesel price of the moment. These costs are of course lower for electric or hybrid cars.
  • Car taxes.
  • Car insurance.
  • Possibly a certain parking space
  • Financing costs. If you want to borrow money for a car, it is advisable to include the repayment and interest costs for the loan in the calculation of the monthly costs.

Car lease costs


With new cars, leasing is very popular: a nice new car for a fixed amount per month, no hassle with maintenance and often affordable too – you can sometimes lease for a few hundred USD a months.

Make sure you read the fine print, conditions, and limitations in the lease contract. With leasing, you enter into an obligation for a longer period of time. What does the contract say about changes in your situation, such as illness, loss of work or divorce?

Breaking open the contract or canceling it earlier is very expensive. In addition: those who unexpectedly drive more kilometers than agreed will pay considerably.

What is involved when buying a car?

Most people find it difficult to find exactly the right car and it is. How do you choose the car that suits you best and what is involved?

5 things to take into account in your choice:

  1. What is your family situation (children, large pets)?
  2. Financial situation and budget (stable / will something change soon?)
  3. What is the maximum amount you have left for a car?
  4. What distance do you expect to drive every year?
  5. What is your technical knowledge: how much can you work on yourself and what do you need to outsource?

View your situation and the car in perspective. A car of 5 years has, of course, more maintenance costs than a car that is just rolling off the tire. On the other hand, much lower depreciation and an occasion cost much less when purchasing. You, therefore, have to invest or borrow less.

Have you found a car that suits you and your situation? This is how you smartly tackle the purchase:

  • Do research: on the internet, you can compare the price and technical condition of equivalent cars. Although the seller is obliged to communicate the defects of the car, you should also explicitly ask for it yourself. In addition, take an extensive test drive and possibly have a purchase inspection carried out, for example by the independent GFIC.
  • Check the mileage and maintenance history. Is there a (digital) maintenance booklet and is this neatly completed according to the factory schedule? Always ask for an inspection.
  • Negotiate. Are you trading in a car for another? Also always ask what the car costs if you don’t trade in anything and start selling your current car yourself. Have additional defects come to light? And most importantly: do you already have the financing completely so that you do not have to take out a loan with the car dealer? These are all strong negotiating positions for a better price for your new car.

Auto finance: Personal Loan

At GFI, borrowing money for a car is by far the most common spending objective.
If you want to borrow money for a new or used car, opt for a Personal Loan. How does it work and what are the benefits?

  • Currently the cheapest in the Netherlands: Personal Loan for car financing starting from interest.
  • A fixed amount on your account once within a few working days: direct access to your money.
  • Fixed-term: you know in advance exactly on which date the loan was repaid. You can adjust the duration to the life of the car or the duration that you want to use it.
  • Fixed monthly installments (repayment and interest); You can also adjust this to your budget.
  • Fixed interest during the entire term.
  • You may always repay additional fines without penalty so that you can pay off your loan even faster.

Wondering if your new car can also be financed through a Personal Loan? Request a free quote here.

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