Mortgages in housing. If you do not have enough money or have a family that can lend you, you should use your property as a mortgage object. Then you can earn a lower interest rate than when you can only offer a mortgage in the car. This solution assumes that there is free security in the home you can use.
For example, if your home has a loan rate of NOK 2 million and you have a loan of 1.5 million, you can borrow at least NOK 200,000 and still be within the 80% limit.
The interest rate on such a loan in a normal situation is approx. 4%
This gives you a 2.88% after-tax financing cost. Now the picture of how high the financing cost is by using equity is starting to show. Above you saw that it was 2.16% after tax. It is thus about 0.7% more expensive to borrow the money with a mortgage on housing.
If you choose to lend on a mortgage, you must remember to increase the repayment rate on the mortgage. It is very important. Every year, you must pay at least extra deductions corresponding to the car’s loss of value.
Many employers have favorable loan schemes for employees. It is not uncommon for this interest rate to creep down to the so-called norm interest rate in working conditions. If you receive a lower interest rate than the standard rate, you must tax the difference. You are taxed at the gross rates. In the highest marginal tax position, this means 21.5%. If we assume that the standard interest rate will be 3.5% over time and you have an offer of 2% interest from your employer, the comparable interest rate after tax is about 1.76%.
Normally, many employers will settle on the norm rate
This means that your financing cost will become the standard interest rate multiplied by 0.72. Finally, we will mention Leasing. This scheme is designed for traders who can account for the car, ie they can deduct all expenses in the accounts. Leasing for private individuals is called long term rent and is not very common. The authorities are constantly looking at the regulations.
The only advantage in favor of leasing is that the leasing company does not have to VAT at 25% of the car’s price excluding the one-off fee. In other words, the car gets a little cheaper if you lease it in relation to buying it.
But the question is who gets rid of the tax advantage, what the residual value is agreed to and what interest rate the leasing company calculates on the money. You must compare the leasing offer with alternative solutions in each case.