When deciding to buy a car in Norway, in addition to searching for your dream four wheels, it is worth recalculating your budget and taking an interest in the subject of a possible loan. A good first step towards buying a car is to apply for a loan in advance, so that we know from the very beginning up to what amount we can buy a car and under what conditions we have a loan. We can apply for a loan directly at the bank, car dealership and commission. In Norway, we have different car financing options, depending on whether we buy a car with collateral (Norwegian pant) or without. The standard solution is a loan with collateral.
Certain requirements must be met for each loan.
If we decide on a car loan, remember that it is only granted to people who have: Norwegian personal number.
Permanent registered address, they are already after the first one tax settlement and have annual earnings of not less than PLN 270.000 per year. If these conditions are met, we are on the right track to our dream purchase.
The next step is to choose the loan period and possible own contribution.
The maximum loan period for the car is 10 years, but here is a surprise waiting for us. When choosing the loan repayment period, remember that at the end of the loan, the car we have purchased cannot be older than 15 years. This means that if we buy a car that is 8 years old, the maximum repayment period we can choose is 7 years.
Own contribution
Based on information such as:
Employment period in Norway.
The amount of our earnings and the amount of car purchase.
banks may require a smaller or larger own contribution from us. Of course, the larger your own contribution, the lower the interest rate on the loan. It is possible to receive a 100% financed loan. However, most banks, due to the risk of a significant drop in the value of the purchased car in relation to the loan, agree to provide 100% financing only if the repayment period does not exceed 8 years, otherwise the own contribution (depending on the bank) may be +/- 20%.
When buying a car with protection, remember that we are obliged to take out full helmet insurance. People who work in Norway for less than 3 years can also expect to pay a minimum of 10% of their own contribution.
Car loans Unsecured.
If we don't have any developed in yet Norway insurance discounts cars or the car purchase amount does not exceed CZK 130.000 or the car you want to buy is older than 15 years, you can apply for an unsecured car loan (casofritt loan). Such a loan has a higher interest rate than a standard car loan, but does not entail the responsibility of insuring it with a full kasko. The loan repayment that we can choose with such a loan may not exceed 5 years. Unsecured loans can already be obtained by people over 18 years of age.
In addition to car loans, we can also apply for financing for the purchase of: camper, caravan, boat, tractor, motorcycle / scooter as well as snowmobile.
Car loan refinancing-billån
Few people know that every loan we have in Norway can be refinanced, and this also applies to car loans. If we currently have a car loan and we believe that the loan interest we pay is too high. We can try to transfer the loan to another bank, saving expenses.
When transferring, we can reduce the monthly loan installment by up to 300 crowns, maintaining the same repayment period as we have so far. The loan may be transferred if the loan repayment amount exceeds CZK 100.000 and the loan term is longer than 1 year.
If you have questions related to the car loan. Would you like to check your credit options or refinance your loan - contact ———. works as a senior financial advisor in the company Eiendomfinance and provide free assistance in the aforementioned matters.
