Car Loan

We can close the gap when you buy a car. You can apply for a loan or long-term car lease at Ergo, which is a part of Íslandsbanki's Corporate Banking division.

Next steps

For further information about car loans you can go to Ergo's website. Only available in Icelandic.

How does Ergo finance work?

  • The car must be less than 10 years old

  • The loan period is shorter for older cars

  • The car must be worth ISK 600,000 or more

  • You must be 20 years of age or over

  • The maximum loan period is 7 years (84 months)

  • A credit assessment is carried out for loans over ISK 2 million for individuals and ISK 4 million for couples

  • Ergo provides finance for a variety of other things

Loan or lease?


What is the difference?

A Car Loan means that you are the registered owner of the vehicle but Ergo has first lien on the vehicle. The bank surrenders its rights once the loan has been fully paid. You are responsible for all taxes, insurance, maintenance and other costs.

A car lease agreement means that Ergo is the registered owner of the vehicle and you are the registered keeper of the vehicle, for tax purposes. Ergo transfers its rights over to you once the contract has been paid in full. You are responsible for all taxes, insurance, maintenance and other costs.