The 62nd Autofestival, organised by FEDAMO (Federation of Automobile Distributors and Mobility), will run from 24 January to 2 February, with some 90 dealers across 170 showrooms taking part. You can find a full list of participating dealers here.
There will be a particular emphasis on exploring the latest technological advancements, with a focus on electric and hybrid cars, and what you can receive as an incentive from the government.
The Cloche d’Or Shopping Center is hosting a related auto showcase from 5 January to 2 February 2026, where visitors can view a selection of vehicles including the latest market innovations, and meet with automotive professionals.
During the first seven months of 2025, a total of 37,013 new vehicles were registered in Luxembourg – including 29,777 cars – marking a 1.4% increase on the same period last year.
Car market stable as fuel transition stalls
Our guide provides information on how to make car choices, bank loans and employee discounts, and tips for buying a new or used car, to help you navigate Autofestival.
Electric car subsidies
The number of hybrid electric/petrol new vehicles rose in 2025, whilst sales of electric cars remained relatively stable. You can view new vehicle figures for 2025 here.
According to the current information on the Klima-Agence website (at time of publication) an up to €6,000 subsidy is available only for family cars whilst the subsidy for e-bikes is also only available to those receiving the cost of living or energy allowance.
Subsidies for electric cars will be reviewed for 31 March 2024 © Photo credit: Anouk Antony
You can get a subsidy of up to €1,000 on an e-motorbike, moped or scooter, and up to €750 for installing a charging station. You can find out more here.
New tools for electric mobility
Klima Agence has launched a number of new tools to support the adoption of electric mobility solutions. These include:
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A new Charge Check tool to compare the prices of public charging stations in Luxembourg and neighbouring regions in a transparent way.
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A comparison of charging station and management systems via a tool that gives an overview of the models available in Luxembourg, including eligibility for financial aid and compatibility with photovoltaic installations (solar panels).
Road tax calculator & vehicle registration
The ACL has a road tax calculator which you can access here. You can find out more about registering a vehicle here.
Fix your budget and criteria
Online advice suggests you fix your budget, then list your car criteria in order of importance – make, model, fuel consumption, size, essential equipment and the main use, such as commuting to work or family travel.
Always test drive more than one car to get a comparison, ideally on a route you’ll be driving regularly so you can try out road holding, manoeuvrability, acceleration and comfort.
Financing your car
Some of the banks in Luxembourg are offering unique Autofestival car purchase loan or lease terms, so it’s worth shopping around and asking the dealer for their terms.
Bank loans for buying or leasing
Car loans offer very attractive rates compared with personal loans because the vehicle itself constitutes a guarantee to the bank. Loans are usually paid back through fixed monthly instalments.
Banks and insurance companies provide online calculators so you can work out your monthly payments including interest over a the period of time you want to repay your loan and see the total amount in interest you will pay in addition to the cost of the vehicle. Many also look at the option to lease and take a loan to do so.
Spuerkeess
BIL
BGL
Raiffeisen
Foyer
La Lux
Here’s an example of how a car loan would work: with an AER (Annual Equivalent Rate) of 2.97%, a car costing €27,000 will require a monthly payment of €596.84 over a 48-month (four-year) period. The interest you will pay over this period is approximately €1,648, but interest is tax deductable.
Zero-percent credit loans
Car dealers will often offer 0% interest loans. There’s no such thing as a free lunch, so the dealer will be covering the cost of the loan and may limit the duration, meaning you have very high monthly payments and a big first down payment.
Check too, that a loan doesn’t negate any other discounts on the car that might outweigh the benefit of 0% interest on a loan. Basically, compare the savings you get from an interest-free loan against the savings you might lose on discounts or the trade-in of your old car.
Employee discounts
Your company might offer discounts with specific dealers (particularly if it runs a fleet of company cars) or with car loan providers. In addition, those working for the EU institutions can benefit from a VAT (TVA) exemption from the purchase of a car valued above the VAT threshold (both new and used). You can find out about VAT on new and used cars here.
Buying a used car
New cars lose value the minute they drive from the forecourt, so sometimes a used car can be better value for money, depending on its age and history. Think about the market depreciation value of the brand of car you are choosing. Some brands like BMW, Audi, and VW depreciate at a slower rate.
FEDAMO also organise the Auto Occasiouns Festival, a second-hand car festival in June. The next one will be 1-13 June 2026.
At the dealers, make sure you read through the vehicle maintenance records, and check invoices, registration card, roadworthiness test documents, and the log book. As a rule of thumb, things start to need fixing or replacing when vehicles are more than five years old, and it’s worth noting if a car has been serviced regularly with filter and oil changes. Most cars have their first technical inspection at 4 years and then again at 6 years, which is when many owners decide to trade up.
Inspect the exterior paintwork, windows and windscreen, tyres and wipers. Inside the car, check the speedometer, seats and seat covers, dashboard controls and air conditioning. Cars that have been sitting idle at the showroom may need a battery and air conditioner unit recharge.
Ideally, you should take a test drive to hear the engine, check the gearbox and brakes and watch for any leakages after the car has been driven, such as transmission fluid. It’s also worth checking the exhaust for emissions, as a car can fail its technical inspection (contrôle technique) on this. If you prefer the advice of a professional, ACL can do a check for you.
Before you transfer payment, make sure you have all the necessary documents, including an invoice. You’ll find details of seller’s and buyer’s obligations on Guichet.lu. The ACL provides guideline invoice information here.
What is the car technical inspection?
Cross-border car purchasing
It is possible to buy your car over the border and register it in Luxembourg (the same if you bring a car from your home country and need to register it).
The government provides information on car registration and roadworthiness certificates here.
