IS LUXEMBOURG THE BEST PLACE TO BUY A PRE-OWNED CAR?

THE PRE-OWNED-CAR MARKET IS BOOMING IN LUXEMBOURG!

This is nothing new. Cars in Luxembourg are renowned for their very high quality for two reasons: residents’ high purchasing power makes it easier for them to buy new vehicles; and leasing companies sell quality pre-owned vehicles when leases expire.

In 2017, 52,775 vehicles were registered in Luxembourg and 50% of those were pre-owned cars. Social media in particular have been instrumental in the pre-owned market’s expansion, as they make offers more accessible.

BUYING A LUXEMBOURG-REGISTERED CAR: A BONANZA FOR PEOPLE LIVING NEAR THE BORDER?

On top of a pre-owned vehicle’s discounted price, if you live near the border, you enjoy an additional financial edge – the VAT rate, which, at 17%, is lower in Luxembourg than Germany (19%), France (20%), and Belgium (21%). The savings on the purchase of a pre-owned car can be very attractive, as non-resident buyers pay only the Luxembourg VAT rate! The procedure for importing a vehicle into the buyer’s home country is simple. However, don’t overlook registration fees and road taxes, which can vary from one country to the next.

See below for the procedure:

(procedure for Belgium) (procedure for France) (procedure for Germany)

3 GOOD REASONS TO BUY PRE-OWNED

1. Quality vehicles: The pre-owned market features a large number of relatively new vehicles, many of which have had only one previous owner, are well-maintained and have low mileage. What’s more, they generally carry a warranty if you buy your car from a repair shop or a certified dealer.
2. Almost immediately available: The vehicle you want is available for immediate sale with just a few days of waiting.
3. Resale value: A new car loses 20% to 25% of its value in its first year. This is less the case for pre-owned cars.