Car financing 2026 – compare the cheapest loans for a car
Compare car financing options: consumer loan, dealer instalment, leasing and bank loan. See what suits you and save hundreds of euros in interest – for free and without registration.
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Car financing is Finland's most popular use for a consumer loan: over 40 % of all new passenger cars are bought with financing (Automotive Information Centre 2024). Doing a comparison before the car purchase typically saves €800 – €2,500 over the full lifecycle of the financing. Dealer-offered instalments are almost always 2 – 4 percentage points more expensive than a separate consumer loan from Lainafy – additionally, a cash purchase usually enables an additional €300 – €800 discount on the car price.
What car financing is used for in 2026
Car financing suits practically all car purchase situations: new or used, combustion, hybrid or electric. Typical amounts and use cases:
Used car (most common use)
The average used car price in Finland in 2026 is about €14,000 (Automotive Information Centre). Most popular used models: Toyota Corolla / Auris Hybrid, Volkswagen Golf, Skoda Octavia, Toyota RAV4. A consumer loan is almost always cheaper than a dealer instalment – typical total saving €500 – €1,500.
- Compact used (5 – 10 yr, Toyota Yaris, VW Polo) 6 000 – 12 000 €
- Family car used (3 – 7 yr, Corolla, Golf, Octavia) 12 000 – 22 000 €
- SUV used (RAV4, CR-V, Kuga) 18 000 – 32 000 €
- Premium used (BMW 3, Audi A4, Volvo V60) 20 000 – 40 000 €
New hybrid or electric car
Electric and hybrid cars accounted for over 60 % of new registrations in Finland in 2024. An electric car's fuel cost is about €2/100 km (vs. petrol €8–10/100 km), which makes 15,000 km of annual driving about €1,000 in savings. Popular new: Toyota Yaris Cross Hybrid, Volkswagen ID.3, Tesla Model 3, Kia EV6.
- Toyota Yaris Cross Hybrid (new) 28 000 – 34 000 €
- Toyota Corolla Hybrid (new) 32 000 – 38 000 €
- Volkswagen ID.3 (new electric) 38 000 – 48 000 €
- Tesla Model Y (new electric) 48 000 – 60 000 €
- Kia EV6 GT-Line (new electric) 55 000 – 68 000 €
New combustion or plug-in hybrid
A traditional new combustion car (petrol/diesel) is still a viable option, especially for high-mileage drivers and company-car use. Volkswagen, Skoda and Toyota dominate the Finnish new-car market.
- Skoda Fabia (new, petrol) 20 000 – 26 000 €
- Volkswagen Golf TDI (new, diesel) 32 000 – 40 000 €
- Skoda Octavia Combi (new) 30 000 – 40 000 €
- BMW 3-series plug-in hybrid 58 000 – 72 000 €
Special-purpose vehicles
Car financing also covers non-family vehicles: motorhomes, vans, boats and motorcycles can be financed with the same consumer loan.
- Van (Toyota ProAce, VW Caddy) 22 000 – 40 000 €
- Motorhome (used, 5 – 10 yr) 25 000 – 50 000 €
- Motorcycle (new/used) 5 000 – 25 000 €
Total cost: €18,000 car financing over 5 years
Example of financing a mid-sized used car (e.g. Toyota Corolla Hybrid, 3 years old). Comparison between the three most common financing options.
| Consumer loan (Lainafy comparison, APR 7.9 %) | ~€21,900 total cost |
| Dealer instalment (APR 10.5 %) | ~€22,900 total cost |
| Secured car loan (car as collateral, APR 6.5 %) | ~€21,100 total cost |
| Cash (0 % interest, ties up savings) | €18,000 total cost |
| Leasing 5 yr (monthly €320, car does not become yours) | €19,200 rental cost |
| Total investment | ~€800 saving vs. dealer instalment |
A consumer loan from Lainafy is almost always cheaper than a dealer instalment (~€1,000 saving over 5 years). A secured car loan (if the car is used as collateral) is cheapest, but the lender selection is limited. Cash is always cheapest, but few can invest €18,000 in one purchase without draining emergency savings.
Car financing options in Finland
Car financing requirements
- Regular income (salary, pension, entrepreneur income) – typically at least €1,800/mo net
- Clean credit record – active payment default entries usually prevent getting a loan
- Age at least 20 – 23 years (varies by lender)
- For a secured car loan: a newer car (under 5 – 7 yr) that acts as collateral
- Finnish personal ID and bank account
- Total debt assessment: new loan instalment + other loans ≤ 40 % of net income
How to apply for car financing – 7 steps
- Determine the car budget and financing need. Remember to include modifications, inspection, first-year insurance (~€600 – €1,200) and tyres (~€800 – €1,500).
- Compare 3 – 5 lender consumer loan offers on Lainafy – note the effective annual rate (APR), not just the nominal rate.
- If you own a home, also ask your own bank for a car loan or mortgage top-up offer – often 2 – 4 percentage points cheaper.
- Ask the dealer for a cash-purchase price. Dealers often grant €300 – €800 discount when they don't get a financing commission.
- Compare cash purchase + consumer loan vs. dealer-offered financing + list price. Consumer loan wins almost always.
- Accept the best financing offer and sign the loan agreement electronically.
- Cash purchase with the dealer – money is transferred directly to the dealer's account or from your own account.
Case example: Mika's Toyota Corolla Hybrid – €20,000, Espoo
Mika was a 35-year-old engineer with €12,000 in savings who wanted to buy a newer Toyota Corolla Hybrid (2022, 45,000 km) at €20,000. The dealer offered an instalment at APR 11 % on the €20,000 list price. Mika compared on Lainafy and got a consumer loan at APR 7.4 % for 5 years. With a cash purchase the dealer granted a €500 discount → car price €19,500. Financing need: €7,500 as consumer loan + €12,000 own.
- Own capital
- 12 000 €
- Consumer loan (5 yr, APR 7.4 %)
- 7 500 €
- Monthly instalment from the loan
- ~€150/mo
- Total loan cost over 5 yr
- ~€9,000
Result: Mika's total savings: dealer discount €500 + APR difference vs. dealer instalment ~€600 = €1,100 saving vs. taking the dealer-offered financing. Car becomes his after 5 years.
The most common mistakes in car financing
- Not comparing – the dealer-offered instalment is almost always 2 – 4 percentage points more expensive than a consumer loan from Lainafy.
- Not asking for a cash-purchase discount – dealers often grant €300 – €800 discount when they don't get a financing commission.
- Taking the longest possible period (7 yr) for the lowest monthly instalment – total interest can be 30 – 50 % higher than with a 5 yr period.
- Underestimating the car's total costs – modifications, inspection, first-year insurance (€600 – €1,200) and winter tyres (€500 – €1,200) are worth including.
- Not considering a secured loan – if you own a home, a mortgage top-up can be 3 – 5 percentage points cheaper.
- Getting an electric car without a charger plan – a home charger (€2,000 – €4,000) is worth financing with the same loan.
- Not checking the service history of a used car – to avoid unexpected repair costs and to maintain resale value.
Frequently asked questions
For a car loan, should I apply for a consumer loan or dealer instalment?
In practice always a consumer loan from Lainafy. The dealer instalment APR is typically 2 – 4 percentage points higher than the most competitive consumer loan on the market. On €15,000 – €25,000 car loans this means €500 – €1,500 saving over the loan lifecycle. As an added benefit a consumer loan enables a cash purchase, where dealers often grant an additional €300 – €800 discount.
Can I use a loan to buy a new car?
Yes. An unsecured consumer loan suits both new and used car purchases. For a new car amounts are often larger (€25,000 – €60,000), in which case a secured car loan (car as collateral) or mortgage top-up may be an even cheaper option.
What is the best car loan effective annual rate in 2026?
At 2026 market level the unsecured car-financing consumer loan APR starts for the best applicants at about 6 – 7 %. A secured car loan (car as collateral) 5 – 7 %. Dealer instalment typically 8 – 12 %. Mortgage top-up 3.5 – 5 %.
How quickly do I get car financing?
A consumer loan decision from several lenders the same day, and money in account within 1 – 3 business days. A secured car loan (car as collateral) 3 – 7 business days, as the lender checks the car's details and value.
Can I combine other costs with the car purchase (tyres, insurance)?
Yes. Consumer loans are not restricted to a specific purpose – the loan can cover the car plus tyres, modifications, first-year insurance and a possible home charger (electric car).
Should I take a secured or unsecured car loan?
A secured car loan (car as collateral) is 1 – 3 percentage points cheaper in rate but restricts selling the car (requires the lender's approval). An unsecured consumer loan is faster and more flexible but slightly more expensive. Secured is worthwhile for over €20,000 financing, unsecured for under €15,000 financing.
Can I pay off the car loan early?
Yes. Finnish consumer protection law guarantees the right to early repayment on all consumer loans under €10,000 without extra fees. For loans over €10,000 the lender may charge a small fee (max 1 %), but some lenders don't charge it.
What is the best repayment period for a car loan?
Recommended is 3 – 5 years. A longer period (7 yr) means significantly more interest costs – €20,000 over 7 yr costs ~€3,000 more than over 5 yr. A shorter period (2 – 3 yr) suits when the car's total price is €10,000 – €15,000.
Can I get car financing as an entrepreneur?
Yes. When applying as an entrepreneur, the lender checks 2 years of financial statements and regular income. If the car is for business use, consider a business loan – business loan interest is deductible in business taxation, and the car can be depreciated on the company balance sheet.
Can I also use the car as an instalment-purchase object?
If you take a secured car loan, the car is registered to the lender as collateral. An unsecured consumer loan is not tied to the car – the car is fully in your ownership and you can sell it whenever you want.
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