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Car Loan Denmark
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Save money on your new car with lower interest rates
Instant answers from up to 21 Danish lenders
We recommend applying to more than one car loan provider. It’s completely non-binding and you have a 14-day cancellation right. Most applications take just a few minutes – and you often get answers the same day.
Recommended

Amount
DKK 6.000 – 65.000
(≈ USD 900 – 10.000)
Term
6-15 months
Interest rate
20,60%
Verified Company
100% free and no obligation
Loan for what you need
Example: Credit amount: DKK 12,000 over 12 months. Interest: DKK 1,408.38. Interest rate: 20.60%. Repaid in 12 payments. Total amount: DKK 13,408.38. APR 23.49%.
Amount
DKK 10.000 – 400.000
(≈ USD 1.500 – 61.000)
Term
12-180 months
Interest rate
2,04-24,99 %
Verified Company
100% free and no obligation to apply
Payment on the same day
Example: Total credit amount: DKK 175,000 – Term: 11 years. APR: 7.45%. – Variable interest rate: 7.00%. – Establishment costs: DKK 1,750 – Expected monthly payment: DKK 1,924 – Total repayment: DKK 253,968 – Term: 1-15 years. – APR: 2.04-24.99%. – Max APR: 24.99%.
Amount
DKK 10.000 – 400.000
(≈ USD 1.500 – 61.000)
Term
12-144 months
Interest rate
0,00-24,24 %
Verified Company
100% free and no obligation to apply
Easy and fast
Example: Calculation example: Total credit amount DKK 35,000. Term 5 years. APR 7.68%. Variable debit interest rate 7.00%. Establishment fee DKK 350. Total repayment DKK 42,000. Term 1-12 years. Interest rate spread 0.00-24.24%.
Amount
DKK 4.000 – 25.000
(≈ USD 600 – 3.800)
Term
1-24 months
Interest rate
24,87%
Example: DKK 8,000 over 24 months. Annual debtor interest: 0%. APR: 24.87%. Monthly payment: DKK 416.67 Total repayment: DKK 10,000 Total credit income: DKK 2,000 Calculation includes an establishment fee of 25%. Applicant must be between 23-70 years of age and must not be registered in the RKI or Debtor Register and must also meet the criteria in the overall creditworthiness assessment.
Amount
DKK 10.000 – 400.000
(≈ USD 1.500 – 61.000)
Term
12-180 months
Interest rate
2,04-24,99 %
Example: Total credit amount: DKK 175,000 – Term: 11 years. APR: 7.45%. – Variable interest rate: 7.00%. – Establishment costs: DKK 1,750 – Expected monthly payment: DKK 1,924 – Total repayment: DKK 253,968 – Term: 1-15 years. – APR: 2.04-24.99%. – Max APR: 24.99%.
Amount
DKK 1.500 – 50.000
(≈ USD 230 – 7.700)
Term
9-199 months
Interest rate
24.99 %
Example: DKK 10,000 over 12 months. Etc. costs: DKK 0. APR: 24.99%. Fixed debit interest rate: 22.52%. Monthly payment: DKK 934.96. Total credit costs: DKK 1,219.47. Total repayment amount: DKK 11,219.47. Monthly payment 3.5% of the outstanding credit or min. DKK 200, depending on which is greater. Min. repayment: 9 months. Max. repayment: 199 months.
Amount
DKK 10.000 – 300.000
(≈ USD 1.500 – 46.400)
Term
36-120 months
Interest rate
9,39-24,43 %
Example: DKK 40,000. Term 60 months. Establishment costs DKK 1,600. Variable debit interest rate 8.21- 16.08%. APR 11.64 – 19.72%. Monthly payment incl. admin. fee DKK 871 – 1,019. Total credit costs DKK 12,254 – 21,120. Total amount repaid DKK 52,254 – 61,120.
Car loans in Denmark offer a practical way to finance a new or used vehicle. These loans come with various options to suit different budgets and preferences. Whether you’re buying your first car or upgrading to a newer model, understanding the terms, interest rates, and repayment options is key.
The Danish car loan market provides flexibility, but it’s important for borrowers to be mindful of their financial capacity and the overall cost of the loan, including any additional fees and charges. This article will guide you through the essentials of obtaining a car loan in Denmark.
The different types of Car loans in Denmark
In Denmark, when it comes to financing a car, there are primarily two types of car loans to consider: secured and unsecured. Each has its own features and requirements, catering to different borrower needs.
Secured Car Loans:
- These loans require the car as collateral. If you default on the loan, the lender has the right to seize the vehicle.
- Generally, secured loans have lower interest rates than unsecured ones because the collateral reduces the lender’s risk.
- With secured loans, you can usually borrow a larger amount, and the repayment terms can be more flexible.
- Ideal for those who are comfortable using their car as security and are looking for lower interest rates.
Unsecured Car Loans:
- These loans do not require any collateral, meaning your car is not at risk of being seized if you default.
- As these loans pose a higher risk to the lender, they typically come with higher interest rates.
- The amount you can borrow might be less compared to secured loans, and the terms are often stricter.
- Your credit score plays a significant role in the approval process, as it’s the main factor lenders consider to gauge risk.
- Best for borrowers who do not want to risk their assets or those who may not qualify for a secured loan.
Choosing between a secured and unsecured car loan in Denmark depends on individual circumstances, including your financial stability, credit history, and personal preferences regarding risk and asset security. It’s important to carefully consider these factors and compare offers from multiple lenders to find the most suitable loan for your car purchase.
How to apply for a car loan
The process of applying for a car loan in Denmark can be a significant financial undertaking, requiring careful consideration and planning. It’s not just about getting the funds to purchase a vehicle, but also about understanding the long-term implications of such a financial commitment. A well-informed approach ensures that you secure a loan that aligns with your financial stability and meets your transportation needs.
The first step in this journey is a thorough evaluation of your financial health. This involves not only assessing your ability to repay the loan but also understanding how the loan fits into your broader financial landscape. It’s crucial to consider not just the cost of the car, but also the associated expenses such as insurance, maintenance, and taxes.
Additionally, the choice between a secured and unsecured loan is a pivotal decision. Each option carries different risks and benefits, and understanding these can help you make a choice that best suits your financial situation and risk tolerance.
- Evaluate Your Finances: Determine your budget and repayment capability by assessing your income, expenses, and debts.
- Check Your Credit Score: Your credit score influences loan terms, so it’s important to know where you stand.
- Decide on the Loan Type: Choose between a secured loan, which uses your car as collateral, and an unsecured loan.
- Research Lenders: Compare offers from banks, credit unions, and online lenders, focusing on interest rates and terms.
- Gather Necessary Documents: Prepare documents like proof of income, employment verification, and ID.
- Apply for Pre-Approval: This gives you an idea of the loan amount and terms you qualify for.
- Select a Vehicle: Choose a car that fits within your pre-approved budget.
- Finalize the Loan: Complete the application with your chosen lender for final approval.
- Review and Sign Loan Agreement: Understand all the terms before signing.
- Complete the Purchase: Buy the car and complete all necessary paperwork.
Example of a Car loan
To provide a clear understanding of what a car loan might look like in Denmark, let’s consider a hypothetical example. This example outlines the key details of a standard car loan, offering a practical insight into what borrowers can expect:
Parameter | Details |
---|---|
Loan Amount | 200,000 DKK |
Loan Type | Secured Car Loan |
Interest Rate | 5% per annum |
Loan Term | 5 years (60 months) |
Monthly Payment | Approximately 3,774 DKK |
Total Interest Paid | 26,440 DKK |
Total Amount Repaid | 226,440 DKK |
Related: Loans in Denmark
In this scenario, the borrower takes out a secured car loan for 200,000 DKK to purchase a vehicle. The loan comes with an annual interest rate of 5% and is to be repaid over 5 years. This results in monthly payments of approximately 3,774 DKK. Over the life of the loan, the borrower will pay a total of 26,440 DKK in interest, making the total amount repaid 226,440 DKK.
FAQ
Frequently Asked Questions
The best loan varies depending on your financial situation. A secured loan often has lower interest rates, but an unsecured loan could be preferable if you don’t want to use the car as collateral.
A car loan is a financial agreement where a lender provides funds to a borrower to purchase a vehicle. In return, the borrower agrees to repay the loan amount plus interest over a set period.
The most common car loan is a secured loan, where the car serves as collateral for the loan.
Yes, if managed responsibly. Regular, on-time payments can improve your credit score, while late or missed payments can negatively impact it.