Three ways to finance a car – choose the best one for you
A bank loan is a sensible choice if you want a low interest rate and you have collateral available. With a bank loan, you will become the car’s owner right away. As collateral, you can use, for example, a home that you own if it is debt-free or if you have repaid your home loan for a few years. When applying for a bank loan, you don’t need to decide yet what collateral you want to use. We will recommend which collateral to use after you have submitted a loan application. As a general rule, a bank loan is the cheapest way to finance a car purchase. You can apply for a bank loan even if you are not an OP customer.
Special Consumer Credit is a good option if you need less than 15,000 euros of financing. You can apply for Special Consumer Credit without collateral. Fill in a Special Consumer Credit application online. You will get a financing decision right away.
With hire purchase financing, you can buy a car from a car dealer or a private person. The car serves as collateral for the loan, so you don’t need other collateral. Hire purchase finance has a fixed monthly instalment and interest so you will know the exact cost of financing throughout the loan period. Customers of all banks can apply for hire purchase.
Car finance interest rate
The interest rate depends on which type of finance you choose. A typical interest rate for car financing is 2–8 %. Normally, a bank loan has the lowest interest rate. If you buy a car from a car dealer with hire purchase financing, the interest rate will be determined on a case-by-case basis.
Can I apply for car finance at a car dealer?
If you buy a car from a car dealer in Finland, you can, as a rule, finance it with OP’s hire purchase. You can apply for a preliminary finance offer easily online, in the service for car buyers (Auton ostajan apuri).
Applying is free of charge and will not obligate you to take out the loan. The final price for hire purchase financing is always set by the car dealer.
Card dealers offer several financing options. If you are an OP customer and want OP’s hire purchase financing, remember to ask for an offer for OP’s hire purchase. The salesperson fills in the agreement and credit application for you. Quick and easy!
Car finance generates OP bonuses
Taking out car finance from OP pays off because your loan will generate OP bonuses. As an owner-customer, you can use OP bonuses to pay, for example, insurance premiums. Using OP as your main bank pays off. Use the bonus calculator to find out how much you would earn in OP bonuses.
Down payment, payment term and costs of car finance
When you buy on hire purchase, you usually need to offer down payment: either a trade-in car or cash. The down payment for a new car is normally about 10–20%. However, car finance can also be granted without a down payment. For used cars, the down payment tends to be about 20–30% of the car’s purchase price.
The repayment period of OP’s hire purchase is 1 to 6 years, depending on your choice. The repayment period is determined by the age of the car, among other things. In hire purchase, the last instalment amount may be higher than the previous ones, if you have chosen to pay smaller monthly instalments.
You can find out about the costs and interest rates of OP’s hire purchase financing in our service for car buyers (Auton ostajan apuri) or from a car dealer. The interest rate under the agreement is fixed throughout the agreement period, so you know the amount of your instalments in advance, and the interest rate remains the same throughout the loan period.