Car Loan Plus
- Pay in instalments (with a final higher payment)
- Apply for your loan online
- Even if you’re not a customer with us
After a new car but prefer not to pay for it all at once? With Car Loan Plus (also known as a balloon loan), you pay a smaller amount each month and a final higher payment, or ‘balloon payment’, at the end. This enables you to hold on to more money while your loan is running.
Why choose a Car Loan Plus?
After a new car, but want to budget for it in a different way than you would with a traditional loan? Sounds like you should take a look at our Car Loan Plus, a type of balloon loan.
- For all types of car not more than three years old
- Worth considering if you change cars every few years
- You pay less per month and a larger lump sum at the end
- You can dip into your savings or sell your car* to make this lump-sum payment
With this loan, you pay a smaller amount each month and decide how to pay off the balance at the end of the term either using your savings and keeping the car, or selling* the car and using that money to pay what’s still owed.
* Important: your car may be worth less than what you still have to pay.
Suppose: You buy a new car for 20 000 euros and borrow the full amount by way of a balloon loan at a notional interest rate of 3.5% for 48 months (four years).
Taking out a Car Loan Plus means:
- You’ll pay 310.41 euros a month for 47 months, or a total of 14 589.27 euros,
- and make a final one-off payment of 7 310.31 euros at the end of the term (in month 48).
- The total amount repaid comes to 21 899.58 euros.
When you compare this example with a traditional loan where the monthly payments are fixed, you’ll pay 446.64 euros a month for 48 months. The total amount repaid comes to 21 438.72 euros.
Important: This is a simplified example. The interest rates used are notional and may differ from actual rates.
Work out your loan and see all your options.
* Representative example:
Representative example: for an instalment loan of 25.000 euros with higher final monthly payment to be repaid over 60 months at an annual percentage rate of charge and fixed actuarial debit interest rate of 4.25%, you pay 59 monthly instalments of 340.67 euros and a higher final monthly payment of 8,440.50 euros. Total amount to be repaid: 28 540.03 euros Down payment (if applicable): 2,000.00 euros Cash price: 27,000.00 euros. Rate valid as from 1 October 2025 for instalment loans taken out for up to 60 months by private individuals and used to finance the purchase of a new vehicle.
More Car Loan Plus information
You decide how long you want to borrow for: between two and five years.
The term is flexible, but depends on the amount you borrow.
For example: if you opt for a two-year term, you will have to borrow at least 3 700 euros.
The longer the term, the higher the minimum and maximum amount you can borrow.
The amounts permitted per term are laid down in law, meaning you cannot just spread repaying any amount over a long period of time.
But not to worry, we work out everything for you with our calculator.
That way you can see the options open to you.
Run a simulation
- Flexibility: You decide how to pay the remaining balance (either using savings or the proceeds from selling your car). Important: make sure you have enough funds in reserve to pay the amount concerned if, say, your car is worth less than expected.
- Lower monthly payments: you pay less each month than with a standard car loan.
- Opportunity to drive a new car: worth considering if you change cars every few years.
Car Loan Plus works on the same principle as other types of balloon finance: you pay lower monthly payments and a higher final payment at the end. What sets Car Loan Plus apart is its focus on flexibility and transparency.
- No down payment required: you start without having to pay anything, which is not the same as having to make a higher final payment.
- No additional conditions such as a maximum number of kilometres that may be driven or that the car must be returned in perfect condition at the end of the contract.
- You decide whether to pay the remaining balance out of your savings or by selling your car. Bear in mind that at that point, your car may be worth less than what you still have to pay.
Other conditions may apply to finance arranged through car dealers. For example, a deposit is often required and there may be additional provisions, such as a limit on kilometres driven or the car must be returned in good condition. These conditions vary from dealer to dealer.
- Car Loan Plus is an attractive option if you change cars often and enjoy driving a new car.
- A car loan is ideal if you know which car you want and want to spread paying for it over the long term.
- Leasing is similar to Car Loan Plus, but there are some differences:
Car Loan Plus
|
Leasing
|
|---|---|
| You own the car |
The leasing company remains the owner |
| You pay a higher amount at the end | Nothing left to pay at the end |
| Lower monthly payment | Higher monthly payment |
| Flexible as regards early repayment and choice of insurer | Less flexible owing to conditions included in the lease |
You can repay all or part of your Car Loan Plus, also called a ‘balloon loan’, early at any time. We will then adjust either the amount you pay each month or the term. Contact your KBC branch (digital or KBC Live) for more information.
Important: you have to pay a reinvestment fee in the event of early repayment.
