Hire purchase – the easy way to finance your company cars

Make the finance arrangements conveniently at the car dealership – ask your seller about your finance options

Get finance directly from the car dealership

Hire purchase finance is available at car dealerships. Once you have found a company car you like, the salesperson will take care of applying for and opening the credit for you. You only have to pay the down payment or trade in your current company car.

You can get hire purchase finance on either a new or a used car regardless of the make or model. We do not require separate security, either, as the vehicle you buy serves as security. 

The car dealership calculates the monthly payment to suit your budget, and you can get a repayment period of up to five years. You can also put down your current company car as the down payment.

You always have the option of paying off your entire hire purchase agreement early. When you have paid off your debt in full, the ownership of the car is transferred to your company. 

You may need these

  • Hire purchace's Tariff
  • Usefull links

Features

  • For new and used cars
  • Fixed monthly payments
  • Repayment period of 1–5 years
  • Down payment or a trade-in worth 20–30% of the cash price

Benefits

  • Car serves as security
  • Pay in instalments that suit your budget
  • Instant credit decision at the dealership
  • Pay off your debt any time

How hire purchase finance works

We have calculated a couple of examples of hire purchase finance for you.

Example 1: Price of the car EUR 18,000

  • Price of the car EUR 18,000, down payment EUR 3,000, financed amount EUR 15,180.
  • Monthly payment EUR 301 per month with a 5-year repayment period.

This calculation has been made with an interest rate of 5.9%. The credit opening fee of EUR 180 and the processing fee of EUR 8 per month are included in the monthly payment. The annual percentage rate of charge in accordance with the Consumer Protection Act on EUR 15,180 of outstanding credit with a repayment period of 60 months is 7.79% and the price of credit is EUR 21,046 (May 2019).

Example 2: Price of the car EUR 48,000

  • Price of the car EUR 48,000, down payment EUR 9,600, financed amount EUR 38,580.
  • Monthly payment EUR 904 per month with a 4-year repayment period.

This calculation has been made with an interest rate of 5.9%. The credit opening fee of EUR 180 and the processing fee of EUR 8 per month are included in the monthly payment. The annual percentage rate of charge in accordance with the Consumer Protection Act on EUR 38,580 of outstanding credit with a repayment period of 48 months is 6.79% and the price of credit is EUR 53,390 (May 2019).

Please note that these calculations are examples only. The final calculation is made at the car dealership in connection with the finance offer. 

Taking your car abroad

Are you taking your car out of the country?

If your car has been financed under a finance agreement, you will need written permission from us to take the vehicle out of the country. Remember to order the document about two weeks before leaving for abroad. We also recommend contacting your insurance company well in advance to make sure that your car insurance covers travelling abroad.

When taking your vehicle to abroad or to Åland, you must bring with you the technical part of the registration certificate which you can order directly from Traficom’s e-Services or a vehicle inspection facility.

Permission to take a vehicle abroad can be granted for:

  • Travelling in Europe (subject to the restrictions below)
  • The duration of the trip (maximum 6 months)
  • Permission to take a vehicle abroad is not granted for trips outside Europe.

You are entitled to get permission if:

  • The monthly payments under your finance agreement are up to date
  • You have valid motor liability insurance and comprehensive motor vehicle insurance policies
  • Your insurance premium payments are up to date
  • Your insurance covers damage to the vehicle for which permission is requested and damage to the vehicle of the other party involved in your destination.

If your destination is Russia, Belarus, Ukraine, Moldova, Kosovo or Turkey, please contact our Customer Service. In addition, your insurance company must provide us with a written confirmation of the validity of your comprehensive motor vehicle insurance if your insurance policy or the theft insurance included in your comprehensive insurance is not automatically valid in these countries.

Finnish motor liability insurance policies are valid in Russia after it joined the Green Card system in 2009. However, with motor liability insurance, the payout is usually low in Russia despite the Green Card system, as compensation for damage is paid out in accordance with the local laws. In order to ensure sufficient insurance cover, we may also require taking out a voluntary motor liability insurance policy.

For further information about the Green Card needed for travelling abroad, the Nordic countries excluded, please contact your insurance company or visit Insurance Centre’s website at www.vakes.fi Green Card is an international certificate of valid motor liability insurance. You can order it for free from your insurance company.

Permission to take your vehicle abroad is subject to a fee set in our tariff. Please note that if such permission is ordered and needed within the same day, you will be charged a fee set in our tariff.

Trading in or selling your car
Changes to your vehicle registration
Upon the expiry of your agreement
Amendments to the agreement and invoicing
Insurance
Hire purchace's Tariff

Changes to your vehicle registration

Changes to your vehicle registration? Are you looking for an easy way to take your car off the road or start using it again? Or do you want to register a vehicle in your company’s name? Find more information here.

Adding another holder to the registration certificate of the vehicle

You can register another holder for your vehicle. To do this, please contact our Customer Service. The co-holder is not required to have any contractual relationship with Nordea Finance. Adding a holder is subject to a fee of EUR 20 set in our tariff and a fee set in Traficom’s tariff.

Register your car as off the road

A leased car can be taken off the road if your insurance company covers any damage which may occur during the time the car is registered as off the road. Contact your insurance company to check if your insurance policy covers the leased car during the time it is registered as off the road.

You can make an off-the-road notification by contacting our Customer Service. Making an off-the-road notification is subject to a fee set in our tariff and a fee set in Traficom’s currently valid tariff.

Please note that you are not allowed to drive a car that has been declared off the road until it has been registered as on the road again.

Registering a vehicle as on the road

When you want to declare your vehicle back on the road, please contact our Customer Service well in advance. Declaring your vehicle as on the road is subject to a fee set in our tariff and a fee set in Traficom’s currently valid tariff. We also recommend notifying your insurance company when your vehicle is in use again.

You can also make these changes using your online banking codes in Traficom’s e-Services.

Switching insurance companies

If you want to switch to another insurance company, fill in an insurance application in the insurance company of your choice and ask them to contact our Customer Service. The insurance company will provide us with the necessary information and we will handle the change of your insurance company directly.

Switching insurance companies is subject to a fee set in our currently valid tariff and a fee set in Traficom’s tariff.

Registration of your vehicle after the expiry of the agreement period

When your debt has been paid off, the certificate will be sent to you by post and you must register the vehicle in your name. You can do this, for example, on Traficom’s website. The certificate is posted on the day you get the vehicle. In accordance with the Finnish Transport and Communications Agency, the vehicle must be registered in the name of the new owner within seven days of receiving the certificate.

Amendments to the agreement and invoicing

Does your company need to make amendments to the hire purchase agreement? Or is there a need to agree on the repayment schedule? Find more information about these and other contractual matters here.

Invoicing of hire purchase instalments

At the beginning of your agreement period, we will send you the repayment schedule and credit transfer with payment details to be used for the entire agreement period by post. The reference number and the amount will remain the same throughout the agreement period with the exception of agreements in which the final instalment is determined larger than the others. If you have taken out a comprehensive A1 Liikennekasko insurance policy, the insurance premiums are included in the same invoice as the instalments.

E-invoicing

Your company has the option of receiving e-invoices. If you would like to get e-invoices instead of paper invoices, contact our Customer Service and tell them your company’s e-invoicing address and EDI.

Change of repayment schedule 

If the agreed repayment schedule does not work for you for some reason, please contact our Customer Service by phone or send us a message via Nordea’s Netbank in order to agree on a new repayment schedule. Due to bank secrecy, we cannot handle credit-related matters via email.

Change of due date

If you want to change the due date permanently or change the due date of one instalment temporarily, please contact our Customer Service. Change of due date is subject to a fee set in our tariff.

Repaying your credit with a larger lump sum

You can repay your hire purchase agreement by paying a larger one-time lump sum. In order for this payment to amortise the outstanding debt only and affect the total interest rate in the agreement, you must make a change to the repayment schedule. After you have updated your repayment schedule, you can agree on the payment terms and conditions for the outstanding debt by contacting our Customer Service by phone or via Nordea’s Netbank. 

Changing the repayment plan is subject to a fee set in our tariff.

If you do not want to make changes to your repayment schedule, the lump sum is considered an advance payment for upcoming instalments. In such a case, the payment amortises the outstanding debt, the interest rate of upcoming monthly payments and the processing fee.

Paying off your credit early

If you want to pay off your credit early, you can check your outstanding debt in Nordea’s Netbank or by calling our Customer Service. If you choose to pay the outstanding debt on a date other than the due date, interest is calculated until the next due date. You can pay off your outstanding debt using the same account and reference numbers as for the previous instalments.

Due to bank secrecy, we cannot disclose information about your outstanding debt via email. On the phone, information about outstanding debt is only disclosed to the contracting party. In the case of your company, the person authorised to sign on behalf of the company is deemed the contracting party. Paying off your credit early does not cause any extra costs.

Assigning the agreement to another person or company

It is possible for us to assign your hire purchase agreement in another person’s or company’s name upon your request. As the holder of the vehicle, you are liable to find a new borrower. Assigning your agreement requires that the new borrower has been granted a favourable credit decision by Nordea Finance. The new holder undertakes to pay the outstanding instalments in accordance with the terms and conditions of the hire purchase agreement.

Upon assigning your agreement, your lease payments must be up to date. If a comprehensive A1 Liikennekasko insurance policy has been linked to the agreement, it cannot be assigned to another holder together with the agreement. Hence the new borrower or lessee must take out a new insurance policy for the vehicle. It takes 2–4 weeks to assign the agreement.

Just follow the steps below:

  1. Select the correct application depending on whether the agreement is assigned to a private person or a company.
  2. Fill in all fields carefully
  3. Print out the application
  4. Sign the application and send it to us together with a copy of the new borrower’s driving licence by email or post. 

Delivery address via email: autoluotot@nordea.com

Delivery address by post: Nordea Finance Finland Ltd, Credit team/Car finance/VO2140, FI-00020 NORDEA

The person signing the agreement on behalf of the company must be registered as authorised to sign on behalf of the company in the Trade Register.

Assignment of the agreement is subject to the fees and costs set in our tariff.

Hire purchase finance considered fixed assets in bookkeeping

In bookkeeping, the vehicle is booked as fixed assets and depreciation on fixed assets is made as usual. Credit interest is a deductible expense. If a VAT deduction can be made on the use of the car, it is made on the purchase price.

Insurance

Involved in an accident? Not to worry. Here you can find advice on what to do.

When damage occurs

File a claim with your insurance company. Any damage to your car must be fixed at an authorised repair shop. As the car is used as security for the hire purchase finance, the car must always be repaired. The repair shop will send an invoice for the repair costs to your insurance company.

Visit If’s online service to file your insurance claim conveniently online. You can find the link to the online service under the Forms section.

Contact information for the Liikennekasko insurance policy issued by the insurance company If:

  • Email: yritysryhmat@if.fi
  • Tel: 010 19 16 16
  • Mon–Fri from 8.00 to 17.00

Cash settlement

Cash settlement is not an option for a car standing as security for hire purchase finance. You must always get the car repaired at an authorised repair shop. 

We also recommend getting other vehicles repaired instead of accepting a cash settlement. All cash settlements are processed on a case-by-case basis. 

As the vehicle stands as security for the hire purchase finance, it is required that the vehicle is repaired properly and that the insurance inspector has approved the repairs.  

Switching insurance companies

If you want to switch to another insurance company, fill in an insurance application in the insurance company of your choice and ask them to provide us with the details of your new insurance.

If switching to another insurance company requires changes to your vehicle registration, ask the insurance company to send a change request and your insurance certificate to our Customer Service.

This change is subject to Traficom’s fee and a fee set in our tariff.

Redemption

If you wish to buy the car, a representative of your insurance company must contact our Customer Service.

Hire purchace's Tariff

Valid as of 1 Dect 2019

Hirepurchase's Tariff for Corporate Customers

An arrangement fee of 0.5% on the agreement capital, 

domestic/import agreements, min.

300/600 €
Invoicing fee9 €

Drafting of a preliminary agreement (incl. the first payment),

following payment(s)

175 €

90 €

Extension of the preliminary status per agreement175 €
Documentary credit or forward trade350 €

Bank guarantee, domestic

foreign

175 €

350 €

Personal guarantee, EUR per guarantee90 €
Other security (e.g. pledge)175 €
Change to repayment plan200 €
Larger one-time instalment50 €
Assignment of an agreement, mergers200 €
Postponement of instalment (plus interest on the postponement)20 €
Change of due date50 €
Registration changes (registration costs subject to Traficom’s currently valid tariff are added to the price)30 €
Copy of receipts/agreements, written confirmation or ordered reports30 €
Interest statement or confirmation of balance; in accordance with section 4a of the Finnish Debt Collection Act, one itemisation per year free of charge, subsequent itemisations
30 €
Liabilities statementIn accordance with the bank's tariff
Driving instruction permit30 €

Export registration,

urgent/same-day processing

30 €

55 €

Power of attorney regarding cash settlement to the insurance company50 €

Investigations/alterations agreed on separately, hourly rate in euros, min. 75 €

75 €
Reminder letter/call15 €
Draft42 €
Protesting a draft58 €