Selling a company car in Luxembourg
Company vehicle, leasing return or a buy-out by the director: what really counts at resale — and what your bookkeeping gets from us.
6 min read
Luxembourg runs on company cars
Every day I see vehicles that don't belong to a private person but to a company — the tradesman, the consulting firm, the restaurant down the road. In Luxembourg that isn't the exception, it's the rule: more than half of the new cars registered here are company or leasing vehicles. Selling a car in Luxembourg very often means selling a company car — and the rules differ from a private sale. That is what this page is about: what to watch for, where your accountant comes in, and what we contribute.
The company sells, not you
The key difference first: with a company car it isn't the driver who sells, but the company that holds the car as an asset. The vehicle sits in the accounts, it has a net book value, and the sale is an accounting event. In practice the invoice runs through the business, not your private account, and the offer you get from us has to be usable by your bookkeeping straight away. That's why we give you a written, verifiable offer rather than a loose price.
Invoicing with Luxembourg VAT — usually 17%
Luxembourg's standard VAT rate is 17%, the lowest in the EU. When reselling a company car, the same question almost always comes up: invoice with or without VAT? The honest answer is that it depends on whether the company was able to deduct the VAT when it bought the car. If it could, the resale is generally subject to VAT; if it couldn't, the treatment differs. That decision belongs to your expert-comptable — not to us or the buyer. We prepare the paperwork according to what your accounts require.
Book value, market value, gain or loss
In the books the car is carried at its net book value — the purchase price less depreciation. The price you actually achieve on the market is almost always different. Above the book value there's a gain; below it, a loss. Both are normal and simply need to be recorded correctly. What matters for you: the more realistic the valuation, the cleaner the entry. An inflated figure that no one will pay doesn't help your accounts. So we value soberly, by what the car is worth on the market today — not by what sits in the asset register.
Leasing returns: hand back or buy out and resell?
A large share of company cars run on leasing. At the end of the term you have two options: simply hand the car back to the leasing company, or exercise the buy-out option (the residual value) and resell it. The second route pays off whenever the market value exceeds the residual value set in the contract. That happens more often than people think — especially with well-kept cars, sought-after models, or when a return would trigger excess-mileage or minor-damage charges. Before you decide, one call is enough: we tell you what the car is worth on the open market, and you weigh that against the residual. If the sale brings more, you take the option and sell to us; if not, you hand it back.
When the director takes the car privately
A common case: the director or shareholder wants to take the car over privately. That's possible, but it's a sale from the company to a related person — and it needs a solid market value. If the car is handed over too cheaply to oneself, the tax authorities may treat it as a hidden benefit; the details belong firmly with your tax adviser. Our contribution is the neutral piece that keeps such questions from arising: an independent, written market valuation documenting what the vehicle is really worth on the date of transfer.
Any make, any condition — and whole fleets
Company cars cover a lot of ground: high mileage, stone chips, a car-park dent, sometimes an expired contrôle technique or a blown engine. For an ordinary sale that's a nuisance; for us it isn't. We buy all makes and any condition, including accident cars, engine damage or no valid inspection — nothing to repair first. And because we work a lot with businesses, we also buy several vehicles at once: a fleet being renewed, a site closing, several leases ending together. One contact, one process, one payment.
What you get from us
Our part is clearly defined: we provide the realistic market valuation and a written offer your bookkeeping can use as is. The precise tax advice — with or without VAT, how the gain is treated, how a private buy-out is done cleanly — comes from your expert-comptable. How it works: 1. Send us the basics through the form — make, model, first registration, mileage, condition, ideally with a few photos. 2. Usually within 24 hours you get a first estimate. 3. If it's in the right range, we look at the car and make a firm, written offer. 4. On agreement, payment is by SEPA transfer, usually the same working day — to the company, never in cash. Within reach of our two sites we collect the vehicles free of charge if you wish.
Frequently asked questions
Who sells — the company or me?
With a company car, the company that holds it as an asset sells. Invoice and payment go through the business. Our offer is built so your bookkeeping can use it directly.
With or without VAT?
The standard rate is 17%. Whether you invoice with or without VAT depends on whether the company could deduct VAT at purchase. That's a question for your expert-comptable; we prepare the documents accordingly.
Is it worth exercising the leasing buy-out?
Yes, whenever the market value is above the contract's residual value. Call us for the market value and compare it to the residual. If the sale brings more, take the option and we'll buy it.
Can the director take the car privately?
Yes, but a solid market value is needed to keep it clean for tax. We supply the independent written valuation; the tax structuring is your adviser's job.
Even damaged or without a valid inspection?
Yes. All makes and any condition, including accident, engine damage or an expired contrôle technique. Nothing to repair beforehand.
A company car to move on?
Send us the details — usually a written offer within 24 hours that your bookkeeping can use.
Get your car valued