After being raised for the first time in more than 12 years, the state is now again lowering the interest rate on the proportional registration fee for leasing cars.
It sounds technical, but it really isn't. For now, the state takes a small percentage of the proportional registration tax on leased cars.
Said in less knotty Danish – it will be cheaper to lease. In both 2022 and 2023, the state otherwise claims that interest. Something that hadn't been touched before for a whole 12 years.
But now the interest rate on the proportional registration tax on leased cars is being lowered from 5.9 to 5.4 percent.
The Motor Authority states this on its website .
The explanation for both increases and decreases must be found in the way in which tax is paid on leased cars in Denmark. By nature, drivers in leased cars do not pay full tax at once.
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Instead, parts of the tax are paid a little at a time. How much is paid depends on the age of the car and the length of the leasing contract. Cars that are older than 36 months are the cheapest. Namely with a tax rate of 0.5 percent.
In return for the lower tax, the state pays itself with an interest supplement, which is calculated on the basis of the remaining tax on the car. And that is the interest rate the government is now lowering again.
When the state chose to raise the interest rate in 2022, the leasing company Lysdahl Simonsen estimated that an Audi A6 Avant would become around DKK 700 more expensive every single month. Read more about it here .
It then became more expensive again on 1 January 2024 and again from 1 June 2024. But now the whistle has sounded differently. Why doesn't the Motor Authority get involved.
The interest rate is adjusted semi-annually. This means that the state, in the form of the Danish Motor Agency, has now chosen to make it a little cheaper to lease from 1 January 2025.
Read more exciting news from and about the world of cars right here!
