FAQS

Once you find your dream car, you can ask the dealership to send us your loan application on your behalf. Our advisor will review your application and contact you if anything is missing.

Yes, the vehicle must be worth at least ISK 600,000. 

• Equal payments: Your monthly amount stays roughly the same throughout the loan term. The interest portion is higher at the beginning and gradually decreases, while the instalment portion increases over time.
• Equal instalments: You pay the same instalment each month, but the interest is added on top. This means your monthly payments are higher at first and then decrease as the principal reduces.

A credit check is required if the loan amount exceeds ISK 3.170.520, including all cost, for individuals or ISK 6.341.040, including all cost, for couples or cohabitants. If the amount is below these thresholds, no assessment is needed. 

Apply for a credit check here. 

No, we do not require a guarantor for individual car loans. 

You must be at least 20 years old to apply for a loan with us. 

If you already have a loan with us and would like to upgrade without borrowing more, you can request a lien transfer. 

If the vehicle is already financed through Ergo, you can apply to take over the existing loan.

The process is simple. Just ask the dealer or seller to submit a transfer request. This means the remaining balance is transferred to the new vehicle. 

As always, an Ergo advisor must approve the takeover, and a service fee applies according to our price list. 

You can switch to a new car or camper and combine your current loan with a top-up loan in a single refinancing agreement. 

This is usually more cost-effective than applying for a brand-new loan for the full amount. Your dealership or seller will handle the application. 

If the vehicle is already financed through Ergo, you can apply to take over the existing loan. This means the remaining balance is transferred into your name and you continue the repayments. 

Simply ask the dealer or seller to submit a takeover request. We will review the details and get in touch. 

As always, an Ergo advisor must approve the takeover, and a service fee applies according to our price list. 

To be considered a Green vehicle, the car must have a CO₂ emissions rating of 0 grams.  

The vehicle may be up to 12 years old. The combined age of the car and the loan term must not exceed 13 years.

We offer loan terms of up to 8 years (96 months) for new or nearly new vehicles.

You can finance up to 85% of the car’s value.

Car loans come with variable, non-indexed interest rates.

Yes you can make extra payments at any time to reduce your monthly instalments or even pay off the loan in full. It is simple, quick, and completely free of charge. You can also set up regular extra payments on a schedule that suits you. 

How to make an extra payment in the Íslandsbanki app or online bank:

• Log into the online bank and go to “Loans”
• Select your loan by clicking on the loan number
• Tap the menu icon (three lines) and choose “Extra payment” 
• Tick the box for “Extra payment,” enter the amount, and choose the account you wish to pay from.
• Click “Continue” and confirm using your security number 

If your next instalment has already been issued and is still unpaid, that payment will be settled first. Any remaining amount will then be used to reduce the principal. 

By paying down the principal, your monthly payments will go down but the loan term will remain the same. 

You can also set up a subscription for automatic extra payments whenever it suits you. It´s fast, easy and convenient. 

Not using Íslandsbanki’s online bank? No problem contact us and we will be happy to assist. 

You can make an extra payment at any time in the Íslandsbanki app or online bank:

• Log into the online bank and go to “Loans”
• Select your loan by clicking on the loan number
• Tap the menu icon (three lines) and choose “Extra payment” 
• Tick the box for “Extra payment,” enter the amount, and choose the account you wish to pay from.
• Click “Continue” and confirm using your security number 

If your next instalment has already been issued and is still unpaid, that payment will be settled first. Any remaining amount will then be used to reduce the principal. 

By paying down the principal, your monthly payments will go down but the loan term will remain the same. 

You can also set up a subscription for automatic extra payments whenever it suits you. It´s fast, easy and convenient. 

Not using Íslandsbanki’s online bank? No problem contact us and we will be happy to assist. 

Set up a subscription for regular extra payments. You will receive a payment request in your online bank based on your chosen schedule. 

f it´s not the right time, you can skip the payment. The request will simply expire. 

No transfers, no hassle just pay the request when it suits you.

Need help? Send us a message and we will gladly assist. 

Yes-you can pay extra or pay off the loan in full at any time without penalty.

Year-end balances for personal car loans appear automatically on your tax return. However, it is always a good idea to double-check the information.

We do not send out paper overviews. You can find your payment overviews in your online bank under “Electronic documents.”

All your payment overviews are stored under “Electronic documents” in your online bank.

Yes, you can lower your payment fee by registering your loan for automatic payments in the online bank. You can also contact a service advisor for help. Fees are listed on the Ergo price list.

No, it's not possible to charge loan payments to a credit card.

You can view copies of your loan documents in your online bank under “Electronic documents.” To find them, select the month in which the loan was issued.

The Electric Vehicle Grant is available to both individuals and businesses, and is paid directly to the registered owner of the vehicle.

Grants are currently ISK 500,000 for new passenger cars and ISK 250,000 for commercial vehicles. 

The grant applies to fully electric vehicles and hydrogen-powered cars with fuel cells

More info on the Electric Vehicle Grant at Ísland.is.

Apply on Ísland.is and receive the payment within two working days. 

More info on the Electric Vehicle Grant at Ísland.is.

Heading overseas with your vehicle can be a great way to travel – and having a loan with us won‘t not hold you back. Just make sure everything is in order before you set off: 

• Your loan must be in good standing (not in default).
• The vehicle must be fully insured with valid liability and comprehensive cover.
• Bring your green card it proves your liability insurance is valid outside Iceland. Check with your insurer which countries accept it.
• Theft insurance must cover the full duration of your stay abroad.
• If you do not have a confirmed return date, additional insurance  may be required.
• On your departure day, you will need to present a travel permit from us at the port checkpoint.

We recommend reaching out to us well in advance of your trip. That gives us time to review your plans and prepare the documents you will need for a smooth departure. 

All financed vehicles must be fully insured, but where you insure it is entirely up to you.

You must inform your insurance company immediately if you have an accident or the vehicle is damaged.

If the vehicle is damaged beyond repair and the insurance company offers you a payout, then we will advise you on what to do with the loan and if transferring it to a new vehicle is the best option.

Our advisors are happy to assist and discuss the various options.

If you had a car or lease purchase agreement with Ergo and have just paid it off, you can expect an ownership transfer to be sent to you for electronic signing.

For the transfer to go through, the vehicle tax must be paid. As the registered user, you should have received an invoice in your online bank.

Once the vehicle tax has been paid, the ownership transfer has been signed, and the car or camper is registered in your name, the following can take place:

• A credit will be issued to you by Skatturinn for vehicle tax you have already paid.
• You will receive an invoice for vehicle tax from Skaturinn in your online bank.

When a vehicle changes ownership, the vehicle tax is partially refunded to the previous owner (Ergo), and a new tax invoice is created for the new owner (you) for the remainder of the period. 

We handle the refund process and transfer the credit to you as soon as possible. In most cases, refunds are processed within 15 days of confirmation from the Icelandic Tax Administration (Skatturinn). 

Please see the Skatturinn website for more information.

This is completely normal if you have just paid off a car or lease agreement with Ergo, registered a vehicle in your name, or sold a financed vehicle.

This is what will happen:

• A credit will be issued to you by Skatturinn for vehicle tax you have already paid.
• You will receive an invoice for vehicle tax from Skaturinn in your online bank

When a vehicle changes ownership, the vehicle tax is partially refunded to the previous owner (Ergo), and a new tax invoice is created for the new owner (you) for the remainder of the period. 

We handle the refund process and transfer the credit to you as soon as possible. In most cases, refunds are processed within 15 days of confirmation from the Icelandic Tax Administration (Skatturinn). 

Please see the Skatturinn website for more information.

All vehicles are required to pay a kilometer charge.
For more details, please refer to the Skatturinn.is website. 

The registered owner of the vehicle is responsible for paying the charge. The only exception is when the vehicle is owned by an asset or finance leasing company, such as in the case of taxis, where the user is the is responsible for payments. The tax applies to passenger vehicles and commercial vehicles.

For more details, please refer to the Skatturinn.is website. 

You can report your vehicle’s mileage in two ways:

At Island.is

Through the Island.is app

If the vehicle is under a financing or leasing agreement, the driver or user (umráðamaður) is responsible for reporting the mileage and making the payment. 

For more details, please refer to the Skatturinn.is website.