We offer a 100% discount on loan origination fees for electric vehicles where the CO2 g/km emissions are zero. The discount is calculated automatically in the application process.

We offer a 50% discount on loan origination fees for other environmentally friendly vehicles if CO2 emissions are lower or equal to CO2 g/km 99 The discount is calculated automatically in the application process.

Arion Bank finances Green Car Loans with Green Deposits.

 

Yes, if you are a new customer of Arion Bank. The credit assessment is part of the digital application process and takes only 2-3 minutes. Under the Consumer Loans Act a financial institution is always required to perform a credit assessment if the amount being financed exceeds ISK 2,200,000 for individuals or ISK 4,400,000 for married couples or registered partners.

 

Car lease agreements are processed in a 100% digital process, which is both quick and flexible. The customer is registered as the user and owner of the vehicle for tax purposes, and once the agreement is settled ownership of the vehicle is transferred to the customer. It is easy to make payments on the agreement or pay it off in full via your online bank account at any time during the agreement period, at no additional expense.

Car loans are issued in the form of a bond registered with the district magistrate. This means that only some of the loan can be processed digitally and that all changes to the loan period must be registered with the district magistrate. The customer is the registered owner of the vehicle, while the Bank has first lien on the vehicle. As with the lease agreement, the loan can be paid down or paid off in full at any time during the loan period at no extra cost. When the loan is paid off the lien on the vehicle is released.

When you have found the right car, the sales representative at the car dealership will send in a financing application. The application is submitted digitally and the approval process is automatic. It is a 100% paperless process as agreements are signed using electronic ID. If a credit assessment is required it is automatically part of the application process and only takes 2-3 minutes.

If you have any further questions please contact one of our advisors by phone on 444 8800 or by e-mail at bilar@arionbanki.is.

Vehicles and caravans financed by Arion Bank must have third-party liability and collision damage waiver insurance during the agreement period. Cancelling collision damage waiver insurance during the agreement period could result in the termination of the agreement.

 

It is easy to pay down the loan principal of car loans and car lease agreements and thereby reduce the monthly repayments. You can pay off car loans and car lease agreement via Arion Bank online banking. You can also deposit money into account 300-26-2525, ID-No. 581008-0150 and put the registration number or loan number in the explanation.

A payment receipt should be sent to bilar@arionbanki.is.

Arion Bank customers can view the status of car lease agreement and car loans in Arion Bank online banking.

 

Interest on car lease agreements and car loans at Arion Bank are non-indexed and variable.

 

You pay equal amortization (annuity).

 

It is possible to pay off an active car lease agreements and car loans for individuals without incurring a pre-payment fee. It is also possible to pay extra and reduce your monthly repayments.

 

Arion Bank finances up to 80% of the purchase price of the vehicle or caravan.

 

Arion Bank permits vehicles to be taken abroad under an active lease agreement as long as certain conditions are met. Customers are advised to contact Arion Bank with adequate notice and ask for written permission to take the vehicle abroad. Norræna and other shipping companies monitor the transportation of vehicles abroad and you are required to show the written permission before boarding the ship. Written permission costs ISK 15,000.

The following conditions have to be met:

• The lease agreement or loan of the applicant must be being paid on schedule
• The agreement must be being paid by direct debit
• The lease agreement/loan must be at least 12 months old
• The applicant’s payment history over the last 12 months must be good
• The applicant may not be in the defaulting debtor database

The following must be included with your application:

A copy of your passport
A “green card” from your insurance company (third party liability and CDW insurance plus theft insurance for duration of your trip). The green card is issued by insurance companies.
Confirmation from the shipping company that transportation costs to and from Iceland have been paid.
Arion Bank can provide further advice on 444 8800 or by e-mail bilar@arionbanki.is.

A credit assessment is used to evaluate applicant’s ability to repay the loan. The credit assessment looks at the applicant’s disposable income, cost of living or operating costs and debts. See here for further information.

 

Electronic ID is a simple and secure way to identify yourself and sign documents. Electronic ID can be activated in our branches throughout Iceland. Activating electronic ID at a branch of Arion Bank is free of charge for our customers but otherwise costs ISK 1,000.

 

In a car lease agreement, Arion Bank is the registered owner of the vehicle during the agreement period and ownership of the vehicle is transferred to the customer at the end of the period. The customer is the registered user of the vehicle during the agreement period. In the case of a car loan, the customer is the registered owner, while Arion Bank has first lien on the vehicle.