Nordea offers private car leasing service in Finland

8th January 2007
By Julia Chan

Financial services group Nordea has introduced a new service to help its customers to acquire a car. Private customers of the Scandinavia-based bank can apply for the Nordea Private Leasing service to gain possession of a new car against an agreed monthly lease, available through all Nordea branches in Finland from January 8, 2007.

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An estimated 143,000 new passenger cars are to be sold in Finland this year, with 100,000 of them to be purchased by private consumers. Half of the purchases will also be paid in cash.

As part of the service, the customer will receive a financing decision within one hour. If the financing is granted, the driver may go any car dealer to choose a suitable car. Separate collateral is not necessary as the car serves as security.

"We think that instead of owning a car it is more important that customers have use of a car that suits their life situation," said Jussi Mekkonen, Nordea's head of household in Finland. "With Nordea Private Leasing it is possible to lease a car for two to four years and use it as one's own."

"Customers who have concentrated their banking business to Nordea and are Nordea's key or preferred customers are granted financial leasing at the cheapest price. In addition, key customers do not need to put up initial capital, which is 10 per cent of the car's purchase price for other customers," Mr Mekkonen added.

In a bid to promote environmental friendly solutions, Nordea Private Leasing is cheaper for buyers of diesel cars than petrol cars.

Under the terms of the service, a leaseholder can change cars flexibly during the lease period or continue the agreement at the expiry of the lease period. When the car is sold at the end of the lease period and the sales price exceeds the car's residual value, the difference is refunded to the customer.

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