Car enthusiasts face a tough situation; various taxes make car prices quite high in the Netherlands. Driving a beautiful car in the Netherlands can be costly. However, there is a way to enjoy a stunning vehicle relatively affordably: a youngtimer.
But what exactly is a youngtimer?
A car becomes a youngtimer when it reaches 15 years of age, measured from the date of first registration (DET), up to an age of 40. After 40 years, it's considered an oldtimer. One condition is that it should be a more exclusive car, one that may potentially attain classic or oldtimer status in the future.
A youngtimer is for drivers who want to stand out and own a car out of passion. They might appreciate the car's character or the sound of its engine. The difference from a classic car enthusiast is that a youngtimer is meant to be driven, not kept in storage when it rains. It can still be used for commuting or daily transportation. With a youngtimer, you should be able to cover between 10,000 and 15,000 kilometers per year comfortably.
Benefits of a youngtimer
You get to experience a bit of nostalgia, and the technology is pleasantly simple. Of course, this doesn't apply to every car, and not every old car will attain youngtimer status. Some brands have withstood the test of time quite well, such as Audi, BMW, Mercedes, Volvo, Saab, and Fiat. According to CBS (Statistics Netherlands), more and more older cars from these brands are on the road in the Netherlands, or they are the most commonly imported.
Choosing a youngtimer offers several advantages. The biggest advantage is the purchase cost. A beautiful youngtimer doesn't have to cost more than €5,000, and you can often drive it away the same day from the seller.
A new car starts losing value from the moment it's registered in your name and driven off the lot. The benefit of a youngtimer is that someone else has already absorbed a significant portion of this depreciation for you. This means lower depreciation costs for you.
Businesswise, that's where the real advantage lies
If you are in a position to purchase a car for business purposes or if you are self-employed, pay close attention. The government has introduced a favorable youngtimer scheme for cars that are 15 years old or older. Under this scheme, there is a 35% addition rate for tax purposes. This may still sound like a lot, but the significant difference is that the tax addition is calculated based on the current market value (day value) of the car and not the original list price. Additionally, after 15 years, the car has already depreciated significantly, leading to substantial monthly savings thanks to this rule.
An additional advantage is that you can have the car re-appraised each year, and the economic market value continues to decrease.
Oldtimer
The mileage remains more important than the age, but above all, the technical condition of the car determines its quality, especially when you're buying a youngtimer as an investment. Despite the decrease in daily value, the market value may even increase as the car approaches 40 years, provided the car is in good condition and the mileage is low. It's always evident in a car when it has been driven for more than 300,000 kilometers, even if the build quality is excellent. Whether a car becomes a classic also depends on its history. Was the car a special edition? Make sure there's an maintenance logbook available; it contains information about the maintenance history!
Every advantage has its disadvantage
The most significant disadvantage to consider is that, with age, worn-out parts become a factor. Maintaining a youngtimer will often be more expensive than maintaining a new car, mainly because the parts can be difficult to source. So, if you're purely looking at it from a cost perspective, a youngtimer might disappoint.
Moreover, it's better to seek out a specialist and enthusiast for your specific car model. They are familiar with the quirks of your car and can spot issues more readily. As a result, they can perform maintenance better than the local dealership. Younger mechanics at these dealerships often have more experience with new cars rather than youngtimers.
Importing is even cheaper!
You can find a nice youngtimer starting from €5,000, provided you import it because it's challenging to find one in the Netherlands. Due to the limited availability in the Netherlands, prices are on the rise, reducing the potential savings. The chances of finding a well-preserved model with low mileage are much greater in countries like Germany.
Germany has a vast selection, and the purchase prices are lower. Additionally, most youngtimers have fully depreciated for the Dutch BPM tax (although legally it's after 25 years, in practice, it's after 17 years and 6 months). This means that importing a youngtimer from Germany is significantly cheaper.
Another significant reason is the level of luxury. Germans love cars, and because they are relatively affordable, more high-end vehicles are sold. Leather upholstery, cruise control, parking sensors, heated seats, and more are common features. Almost all used cars are incredibly well-equipped, especially by Dutch standards. Curious about the offerings? Take a look at Autoscout24.de or Mobile.de.
Tip: Switzerland!
Swiss cars are often in excellent condition because they are generally well-maintained. Switzerland has stricter standards for vehicle condition compared to the Netherlands. This means that used cars that have recently passed an inspection are often in good technical condition. Additionally, the market for high-end cars and convertibles is significant in Switzerland compared to the Netherlands. You can read our other blog about importing from Switzerland.
Apart from Switzerland, importing a car from Japan is also recommended; they take good care of their cars. This applies to both new vehicles and youngtimers and classics.
Handling the import on your own or having VDS do it?
It's clear that there are advantages to importing a youngtimer. Of course, it does require more effort than buying a car in the Netherlands. The benefit is that the entire process associated with it can be fully taken care of by us. You choose the car yourself, make the purchase, and we handle the rest.
Want to learn more about importing a youngtimer? Feel free to contact us for a no-obligation consultation via import@vdsautomotive.com or through the contact form.