Rev Up Your Ride: How to Secure an Affordable Car Loan in Denmark

Are you ready to hit the road in your dream car, but struggling to secure an affordable loan?

Car loan interest rates in Denmark are determined by each lender individually, so it pays to compare offers. The typical length of a loan is between one and seven years, and the borrower can choose between weekly, biweekly or monthly payments.

Keep in mind that a down payment equal to at least 20% of the price will be required to get approved for a loan. You can locate a loan that won’t break the bank and get your ride revved up with some homework and comparison shopping.

car loan interest rates
Image credit: Flickr

Requirements for a loan

If you’re looking to finance a car in Denmark, be prepared to meet the following requirements:

  • A down payment of at least 20% of the car’s purchase price
  • A good credit score
  • Evidence of income and employment
  • A valid driver’s license

If you can meet these requirements, you should be able to get an affordable loan from a Danish bank or lender.

Understanding license plate requirements

In Denmark, you need a legal driver’s license and registration to drive. To get a car loan, you’ll need to show the dealer your driver’s license, registration and proof of insurance. Getting a driver’s license and registering a car is different based on where you live, so check with the Danish government before you apply for a car loan.

You’ll also need a legal Danish license plate on your car, in addition to a driver’s license and registration. In order to get some information about the car, taxes and is the car safe – so check danish licens plates at AltOmBilen.

The name of the registered owner and the county or area in Denmark where the car is registered must be on the license plate.

This information will be written on a string of numbers and letters that must be easy to see from the outside of the car. Different counties can use different colors and forms, but all license plates must have the same basic information.

Tips on finding the best rates

Finding the best rate and terms on a new auto loan in Denmark requires shopping around various lenders. A few suggestions to get you going are:

You should inquire about your present financial institution. Existing clients may be eligible for discounts.

Also, compare interest rates from several internet lenders. Check the annual percentage rates as well as the interest rates.

Before applying for a loan, use a loan calculator to see what your monthly payment would be and how much the loan would cost in total.

Once you’ve narrowed down your choices to a manageable number, submit pre-approval applications to different lenders. This can help you determine the type of loan for which you qualify and the approximate monthly payment for that loan.

Finding the right car dealer or lender

One of the best ways to find a good deal on a car loan is to work with a reputable car dealer or lender. Some dealerships work with multiple lenders and can help you compare rates and terms. They may also be able to offer discounts or special financing deals.

If you are working with a lender directly, be sure to ask about any fees or costs associated with the loan, and get everything in writing before you agree to anything.


Getting a car loan in Denmark can be difficult, but if you follow these steps, you’ll have a much easier and more pleasant experience. When financing a new car, it’s important to do your research, make an honest budget, investigate online lenders, and be open to taking out a shorter-term loan if necessary.

Jasper has been an enthusiast of the automotive and IT industries since the age of 16. He independently writes on the auto industry's recent happenings.