Car loans

There are no loan origination fees on loans from Arion Bank for electric vehicles and other vehicles powered by 100% renewable energy.

* 4.4% interest assuming 50% loan-to-value ratio

No loan origination fees for 100%
electric cars


Electric vehicles

100%

discount on loan origination fees

Customers do not pay any loan origination fees for financing vehicles which run entirely on electricity or other renewables.


Environmentally friendly vehicles

50%

discount on loan origination fees

When financing other environmentally friendly vehicles which use both renewables and fossil fuels we offer a 50% discount on loan origination fees.

 

Anyone can apply
a car loan from
Arion Bank

Vehicle financing from Arion Bank is available to anyone regardless of where you normally do your banking.

Once you have found the vehicle you want, the car dealer will submit an application for financing via Arion Bank’s application system. The application process is 100% paperless and agreements are signed using electronic ID.

Do I need to undergo a credit assessment?

Yes, if you are a new customer. But don’t worry, the credit assessment is part of our digital process and only takes 2-3 minutes.

A simple digital process

 

1

You find the car you want and contact a car dealer

2

The car dealer submits a digital application for financing.

3

You sign the agreement in your mobile phone.

4

Congratulations on your new car!

What is the difference between
a car loan and a car lease agreement?


Car loan

The borrower is the registered owner of the vehicle from the outset, but Arion Bank has a first lien in the vehicle.


Car lease agreement

A car lease agreement is 100% digital. Arion Bank is the registered owner during the loan period, while the borrower is the registered user and the owner for tax purposes.

 

Can I get a loan for any vehicle?

  • The maximum loan period is 7 years
  • The age of the vehicle and the loan period can be a combined maximum of 15 years
  • The loan can be up to 80% of the purchase price of the vehicle
  • The minimum purchase price of the vehicle is ISK 700.000.
  • The vehicle can have a mileage of a maximum of 170,000 km at the time of borrowing
  • If the vehicle is too old you can bridge the gap with a Consumer Loan.

Do you need car insurance?

Buying a car is a considerable investment and any damage to the car can prove very expensive if you don’t have proper insurance coverage.

It only takes a couple of seconds to get a quote for car insurance from Vörður insurance in the app. If you find the insurance quote you want, you can complete the purchase with a single click.

  • Keep track of your insurance policies from Vörður in the Arion app and get a complete overview of what coverage your policies provide in just a few clicks.
  • You can easily add more insurance if you want better protection or if your circumstances change.

Get the Arion app for iOSGet the Arion app for Android

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