Financial leasing

A financial lease is a rental agreement in which your company only pays for the use of a car.

Pay only for the use of car

For a financial lease, you will be charged a fixed monthly lease payment and you only pay for what you use

A financial lease is a rental agreement in which your company only pays for the use of a car. Servicing is not included in the monthly lease payments. The customer is liable for the residual value determined in the financial lease agreement. On the expiry of the agreement period, the car is usually sold to the car dealership. If the sales price exceeds the residual value, the difference is refunded to the customer. If the sales price is lower than the residual value, the difference is charged to the customer.

Finance leasing in brief:

  • Long-term 2–5-year lease agreement for a new car
  • Option to include an affordable comprehensive motor vehicle insurance policy in the lease payments
  • Car serves as security
  • Initial deposit is 10–20% of the price of the new car
  • Fixed monthly lease payments, excluding servicing
  • No kilometre restrictions
  • Customer is responsible for the residual value at the end of the agreement
  • The difference between the sales price and the residual value is refunded to the customer or the negative difference is charged to the customer

Benefits for your business:

  • Your capital is not tied up to owning the car – you only pay for the use
  • Lease car is an off-balance-sheet arrangement and the lease payments are booked as expenses
  • You can choose the make, model and car dealership yourself
  • You are free to trade in the car for another during the agreement period

Amendments to the agreement and invoicing

Amendments to the agreement and invoicing

Invoicing of lease payments

Lease payments are invoiced in advance. The invoice is issued every month or every three months and delivered by post. Your lease payments are fixed.

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 operator ID.

Termination of your lease agreement

You are allowed to sell the car during the agreement period. To do this, you must find a new buyer who is offering to buy the car at a fair market price. Their offer must specify the car and include the purchase price. Both you as the holder of the car and the new buyer must sign the offer to approve it.

The offer must be sent to our Customer Service for approval. If the offer is approved, we will send a counter-offer to the buyer. If the purchase price exceeds Nordea Finance’s receivable, you are entitled to a refund to cover the difference. If the purchase price is lower than Nordea Finance’s receivable, the difference is charged to you.

The notification part of the registration certificate will be sent to the new owner after the purchase price has been paid to Nordea Finance in full.

You can also transfer the agreement to another company or person. See “Transfer of the agreement”.

Agreeing on a repayment period

If you would like to agree on a repayment period, please contact our Customer Service by phone or send us customer mail via Nordea’s Netbank. Due to bank secrecy, we cannot handle credit-related matters via email.

Change of due date

If you want to change the due date of your monthly payments under your lease agreement, please contact our Customer Service. Changing the due date of an invoice is subject to a fee set in our tariff.   

Overpayments

If you wish to pay more than your usual lease payment, you can make an overpayment If you want to reduce your upcoming lease payments by making an overpayment, you must make a change to the repayment plan in your agreement. To adjust your repayment plan and change the repayment schedule of your outstanding lease payments, please contact our Customer Service or send us customer mail via Nordea’s Netbank. Changes to the repayment plan are subject to a fee set in our tariff.

Transfer of the agreement to another company or person

We can transfer your lease agreement to another company or person. As the holder of the vehicle, you are liable to find a new borrower or lessee. Transferring your agreement requires that the new borrower or lessee has been granted a favourable credit decision by Nordea Finance. The new holder undertakes to pay off the outstanding debt or make the outstanding lease payments in accordance with the terms and conditions of the lease agreement.

 

Upon transferring your agreement, the lease payments must be up to date. If a comprehensive Liikennekasko insurance policy has been linked to the agreement, it cannot be transferred to another holder together with the agreement. Hence the new lessee must take out a new insurance policy for the vehicle. Please note that it takes 2–4 weeks to transfer the agreement.

Follow the steps below:

  1. Open the application for transfer under the Forms tab
  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.
  5. Send the application by email to: A1-luottotiimi@nordea.com
  6. Send the application by post to: Nordea Finance Finland Ltd, Credit team/Car finance/VU5193, FI-00020 NORDEA

Please note that 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 maintained by the Finnish Patent and Registration Office. Transfer of the agreement is subject to the fees and costs set in our tariff.

Lease payments and taxation

Your company can deduct the entire lease payment as expense in taxation. VAT is deducted from each lease payment.

Taking your vehicle abroad
Trading in and selling your card
Changes to your vehicle registration
Inspection of your lease car
Expiry of the agreement and returning of the car
Insurance
Tariff