Loan or leasing when buying a car?

Find the right loan to fulfil your goals

There are various options available to you if you’re thinking of buying a new car. They’re all unique in their own way and offer certain advantages, which you should weigh up to find the one that’s right for you.

We’ve put together an overview of the differences between car loans, car leasing and car hire that you should take into consideration before buying. If you have any questions, feel free to get in touch with one of our leasing managers.

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Car loan

Purpose

Purchase of a used car or other vehicle
Covering other car-related costs

Advantages:

- Covering car-related costs
- Fixed monthly payments
- The car’s age is unimportant
- Comprehensive insurance isn’t mandatory

Drawbacks:

- Higher cost of credit

CostSensible option if the car is valued at up to €10,000

Interest rateFixed

CollateralNone

Leasing

Purpose

Purchase of a new car or a car that’s seen only limited use
Financing of a recreational vehicle

Advantages:

- Lowest cost of credit
- Downpayment from 0%
- Lower monthly payments

Drawbacks:

- The car is leased, not owned
- Comprehensive insurance is mandatory

CostSensible option if the car is valued from €10,000

Interest rateFluctuating (x% + 6 months’ Euribor)

CollateralObject of lease

Car hire

Purpose

Hiring a vehicle

Advantages:

- All car-related costs are included in the monthly payment
- Doesn’t constitute a financial obligation
- Flexibility in terms of the rental period
- Wide range of cars to choose from

Drawbacks:

- The car is owned by the hire company

CostDepending on agreement

Interest rateFixed monthly payments

CollateralNone

Find a solution that suits you

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Motor insurance

Compulsory car insurance that compensates for damage caused by your vehicle to other road users and their property.

Comprehensive insurance

Voluntary vehicle insurance, which helps prevent big financial losses in the event of an accident. In addition to traffic accidents, insurance covers the losses caused by crime and natural disasters.

Lease payment insurance

Leasing insurance protects private individuals buying cars with the help of leasing against payment difficulties in the event of job loss and disability. Leasing insurance is provided by the bank’s subsidiary Coop Liising AS in cooperation with If P&C Insurance AS.

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