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Hire purchase and loans for vehicles

Customers can obtain financing for up to 80% of the purchase price excluding VAT. The financing ratio and period depends on the type and service life of the vehicle involved.

There are two financing options available: hire purchase or vehicle loan, both of which offer similar terms. Contact us for further details.

Lease or loan period

The lease or loan period depends on the service life of the vehicle being financed. The standard financing period for new vehicles is 5 to 7 years. Short-term and long-term financing is also available. The maximum financing period is 10 years if conditions allow.

Flexible payments

Repayments are generally made in equal instalments but customers with seasonal income streams can adjust their repayment schedules accordingly. The customer can therefore choose to pay more when their income is higher and make lower payments when the cash flow is lower.

Ownership during the loan period

Hire purchase

Arion Bank is the registered owner during the hire purchase agreement period. At the end of the agreement or when the loan has been repaid, ownership is transferred to the lessor. The customer capitalizes the vehicle and it is depreciated in the company’s accounts.

Vehicle loans

The borrower is the registered owner of the vehicle during the loan period and Arion Bank has first lien. The customer capitalizes the vehicle and it is depreciated in the company’s accounts.

Insurance

All vehicles being financed must be insured and must have collision damage waiver coverage for example. We send an insurance application to your insurance company before financing is completed.

Public fees

A registration fee must be paid on vehicle loans. The customer pays insurance and also pays other fees related to running the vehicle, e.g. tonnage tax, vehicle tax and fines etc.

Specialists in vehicle financing

Our specialists have many years of expertise and are always ready to help you find the best solution to finance your investment in vehicles.

SPECIALIST CORPORATE LEASING

Jón Ragnarsson 

jon.ragnarsson@arionbanki.is

SPECIALIST INDIVIDUAL LEASING

Thelma Harðardóttir

thelma.hardardottir@arionbanki.is

SPECIALIST CORPORATE LEASING

Yngvi Eiríksson

yngvi.eiriksson@arionbanki.is

SPECIALIST CORPORATE LEASING

Andri Ellertsson 

andri.ellertsson@arionbanki.is

SPECIALIST CORPORATE LEASING

Ragnheiður Pétursdóttir

ragnheidur.petursdottir@arionbanki.is

SPECIALIST INDIVIDUAL LEASING

Þórhalla Sólveig Sigmarsdóttir    

thorhalla.sigmarsdottir@arionbanki.is

SPECIALIST INDIVIDUAL LEASING

Bentína Pálsdóttir 

bentina.palsdottir@arionbanki.is

SPECIALIST INDIVIDUAL LEASING

Rósalind María Gunnarsdóttir

rosalind.gunnarsdottir@arionbanki.is