Used company cars and vehicles: what you need to know

Why choose a used vehicle or company car?

• Because the purchase price or the monthly lease payment (in the case of a lease) will be lower than for a new vehicle. A new car loses a significant part of its value in its first year. In the case of a second-hand vehicle, this initial depreciation will already have been absorbed by the first owner.
• Because a used vehicle is quickly available, while the time between ordering and delivery of a new vehicle can extend to several months.

Is the tax deduction for a used company car the same as for a new vehicle?

• Yes, the tax rules on deductibility are the same for used and new vehicles. The deductibility of a company car and the applicable rate depend mainly on the type of powertrain and the vehicle’s CO2 emissions.
• VAT is also recovered in the same way as for a new vehicle, with a maximum of 50% (except for commercial vehicles). However, if you buy your vehicle from a private seller who is not subject to VAT, you will not pay VAT. Consequently, you will not be able to reclaim any VAT.
• The depreciation period during which you deduct your investment is directly linked to the vehicle’s expected period of use. Depending on its age, your accountant or tax adviser may recommend a shorter period than the standard five-year depreciation period used as a benchmark for a new vehicle.

What do you need when buying a used vehicle?

When purchasing a used vehicle, the seller must provide you with:

• The sales invoice
• The pink vehicle registration application form, to be submitted to your insurer, as explained here, to obtain your registration certificate and number plate within one working day, or sent directly by you to the DIV of the FPS Mobility and Transport
• The roadworthiness test certificate, following the mandatory test carried out by the seller of your future company car, together with the used car report drawn up by the roadworthiness testing centre following the test
• The Car-Pass, which details the vehicle’s mileage history and includes other important information such as CO2 emissions, work carried out on the vehicle and the battery’s state of health (SoH) for an electric vehicle
• The vehicle’s certificate of conformity

What is the battery State of Health (SoH)?

The SoH (State of Health), or a battery’s state of health, is an indicator expressed as a percentage of its capacity relative to its condition when new. When buying a second-hand electric vehicle, this factor is very important because:

• The battery’s state of health will determine the driving range of the second-hand vehicle
• A vehicle’s battery accounts for a large proportion of its value. Its state of health will therefore have a significant impact on the vehicle’s overall value

Example:

Does the battery of a used vehicle have a SoH of 94%? This means that its current capacity is equivalent to 94% of what it was when new. If the vehicle’s advertised range was 500 km when new, it would theoretically now have a range of 470 km (94% of 500 km).

Since 1 January 2026, the state of health of the battery in a second-hand electric or hybrid vehicle must be stated on the Car-Pass.

How can you finance your used company car?

Choosing a used company car does not, in principle, affect how you finance it. However, bear the following points in mind:

• Are you planning to buy the vehicle with a car loan? The maximum term of the contract may be reduced depending on the age of the vehicle.
• The lender or leasing company (in the case of financial leasing) may be reluctant to finance the vehicle if it is too old.
• Operational leasing of used vehicles is becoming increasingly common, with a growing range of options available. As the monthly lease payment for a second-hand vehicle under an operational lease is lower than for an equivalent new vehicle, its total cost of ownership (TCO) is also more attractive.