Tuesday, January 28, 2025

Happening in two weeks – Denmark makes popular cars more expensive again

Once again, the Danish state raises the interest on the proportional registration fee. This makes leasing cars more expensive.

The Danes flock to such an extent about leasing cars.

So now the government is raising the interest rate on the proportional registration tax paid by leased cars again.

This is stated by the Danish Motor Agency in a press release .

The interest on registration tax increases from the current 5.5 percent to just under 6 percent per 1 July 2024. 5.9 percent if we have to be completely accurate.

READ ALSO: Russia wants gigantic compensation from Volvo

The state also raised the yield on the tax on leased cars last year. At the time, the increase had not been seen larger for a full 12 years.

The explanation for the increase must be found in the way in which tax is paid on a leased car. By nature, drivers in leased cars do not pay the full tax at once.

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.

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 raising.

When the interest rate was raised last year, 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 .

The interest rate is adjusted semi-annually. This means that the state, in the form of the Motorstyrelsen, will once again make leasing cars more expensive on 1 January 2025.

Read more exciting news from and about the world of cars right here!

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