Sample

A sample reflecting the total costs of a borrowed funding under the finance lease:

Should you choose to purchase a car Toyota Auris produced in 2011, the selling price of which is EUR 22880.00, incl. a 22 % VAT, then concluding a finance lease agreement with Nordea Finance Latvia upon the following conditions:

• the funded amount is EUR 18304.00, incl. the 22 % VAT, which is 80% of the selling price;
• the down payment is EUR 4576.00, incl. the 22 % VAT, which is 20% of the selling price;
• maturity is 60 months;
• the aggregate interest rate is 4.61%  (constituted by the mark-up rate of 3% and the base rate of 3 m EURIBOR, which was 1.61% on 18/07/2011, assuming it would remain unchanged throughout the agreement term);
• the commitment fee for processing the lease agreement is EUR 343.20 incl. the 22 % VAT, which is 1.5% of the selling price,

your:

• monthly payment would be EUR 342.16;
• the total amount repaid on maturity of your loan would be EUR 20872.69 (excluding the down payment) and
• the annual interest rate would be 5.52%.

There are going to be some collateral costs to the borrowing, namely registration of the vehicle with the Road Traffic Safety Directorate (CSDD) according to its pricelist (from LVL 3.00 to LVL 20.00), and the voluntary vehicle insurance  (KASKO) (from LVL 291 to LVL 475).

The calculation outlined in the sample was made on 22 July 2011.