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Vehicle financing

Main benefits

  • Up to 75% financing
  • Loan term of up to 7 years
  • Loan term can be up to 9 years when financing new vehicles if the loan-to-value ratio does not exceed 65%
  • Combined age of car and loan period can be maximum of 12 years
  • Customers enjoying the Bank’s premier service "Vildarþjónusta” get lower interest rates and a discount on borrowing fees
  • No costs when making deposits or paying off a loan
  • Equal payments over the loan period
  • Interest on the loan is variable and non-indexed
  • Choose between a vehicle loan or hire purchase
  • New vehicle financing product
  • Arion Bank offers a new vehicle financing product. We now offer up to 65% financing for up to 9 years when buying a new car from a dealership.

There are great benefits to the customer:

  • Lower monthly payments over a longer loan period
  • Makes it easier to buy a new car
  • No fee for paying off the loan early and no fee for paying off the principal during the loan period Full warranty on new cars during first few years
  • Customers enjoying the Bank’s premier service "Vildarþjónusta” get better terms of business
  • Quick and professional service from Arion Bank’s financial advisers.

Contact one of our vehicle financing specialists at Borgartún 18, 2nd floor, by phone on 444-8800.

Vehicle loan or hire purchase

Under a hire purchase agreement Arion Bank is the registered owner of the vehicle during the contract period while you are the registered user and the owner for tax purposes. At the end of the lease period the vehicle is yours.

When you take out a vehicle loan, you are the registered owner of the vehicle and Arion Bank has first lien on the car.
Financing costs are specified in Arion Bank’s list of rates and charges.

Taking over a loan

In such cases a new loan is issued. Costs are specified in Arion Bank’s list of rates and charges.

Changing the vehicle

It is possible to renew or swap an older vehicle during the loan period. Costs are specified in Arion Bank’s list of rates and charges.