Avant auto financing 

Avant offers three options to lower debt-service burden

Repayments on your car loans/purchase agreements in foreign currency and indexed car loans/purchase agreements.

Customers with performing loans at Avant can now choose one of three options to lower their debt-service burden on their car loans/car purchase agreements in a foreign currency and indexed car loans/car purchase agreements.

• These options only apply to performing loans and agreements that were entered into or taken over before 1st October 2008. For agreements entered into between 1st June 2008 and 1st October 2008, the debt burden is determined by their first due date. No fee will be charged for the changes introduced here.
• You are advised to compare these options and select the one which best suits you in the event you cannot make payment in full on the due date.
• Furthermore, if you have already missed a due payment, you are urged to make good on your loans or come to an agreement with us on the loan you have defaulted so you can take advantage of one of these options.
• We recommend that you apply via our website, www.avant.is. If you do not have access to the internet, or for another reason wish to contact our advisors directly, please call 412 8900, or visit us at Suðurlandsbraut 12, Reykjavík.
• Applications shall be received before the 10th of each month for next month’s due date.
• We should like to notify our customers of the fact that their interest cost could increase if their loan period is extended and the agreements/loans continue to be subject to exchange rate risk where the principal changes in relation to the exchange rate. Instalments on foreign loans which have been frozen or extended will change in relation to the exchange rate. Instalments on rescheduled loans will change according to the rescheduling index while the principal will continue to change in relation to the exchange rate.

Avant’s options

Please note that hereinafter the term “loan” shall apply to both car loans and car purchase agreements:

1. Continue to freeze your loans (in Icelandic = Frysting). We are still offering the previous arrangement whereby customers could request that their loans be frozen for 8 months at a time and thus pay interest and part of the instalment (33%, 50%, or 66%). This only applies to loans in a foreign currency that were taken or taken over before 1st October 2008 and which are currently being repaid on time. This option will be available until the end of 2010.

2. Extension of a loan for up to three years (in Icelandic = Lenging). In this case the number of due dates will be increased to up to 36, however never more than to achieve minimum due dates, i.e. the amount of the instalment will change in keeping with the extension although never being lower than it was in January 2008 for indexed loans and in May 2008 for loans in a foreign currency. The principal and instalments will be decided by changes in the Consumer Price Index, or the exchange rate, in keeping with the original loan agreements. The loan will be fully paid during the agreement period. You must apply for this option before the end of 2010. This applies only to individual borrowers. This option only applies to loans taken or taken over before 1st October 2008 and which are currently being repaid on time. For loans taken between 1st June 2008 and 1st October 2008 the debt-service burden is decided by their first due date. No fee will be charged for the changes introduced here. Borrowers whose loans have been frozen until now can select this option when the current loan freeze period has ended.

3. Rescheduling the debt by extending the loan for up to three years (in Icelandic = Greiðslujöfnun). The amount due on the first due date will equal the one on January 2008 for indexed loans and in May 2008 for loans denominated in a foreign currency. The amount due will then change in relation to the Rescheduling Index which is based on wage developments and the level of employment. This option only applies to loans and agreements entered into or taken over before 1st October and which are currently being repaid on time. For agreements entered into between 1st June 2008 and 1st October 2008 the debt-service burden will be decided by their first due date. This option is based on a plan of action devised by the Ministry of Social Affairs. This is the so-called elastic solution. The principal is based on the Consumer Price Index for loans in Icelandic krónur or the exchange rate for loans in a foreign currency. If the debt has still not been paid off in full by the end of the agreement period, the borrower can pay the balance and acquire ownership of the car or return it in to Avant without any further encumbrance (see further in the terms). No fee will be charged for the changes introduced here. Borrowers whose loans have been frozen until now can select this option when the current loan freeze period has ended. This option will be available until the end of 2010. This only applies to individual borrowers. 

Your numbers in our letter?

If you have received a letter from Avant you can see what your next due payment might be for your agreement based on different options. If payments on your loan are currently suspended (freezed), the option you are applying for will come into effect once the current loan freeze period has ended. Please note that the figures in the letter are only used as a reference, calculations are based on the status of the loans/agreements on 31st October 2009 and published here without guaranty and with a proviso for possible errors in the calculations or their presentation. 

How do you apply?

We recommend that you apply via our website, www.avant.is. If you do not have access to the internet, or for another reason wish to contact our advisors directly, please call 412 8900, or visit us at Sudurlandsbraut 12, Reykjavík. 


Apply. 
 

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Auto loans and leases

• Avant’s auto loans and leases can either be with fixed payments of principal or fixed annuities.
• If the term of the loan or lease exceeds five years the principal may be linked to the Consumer Price Index (CPI).
• Maturities of auto loans and leases to finance the acquisition of new cars can range up to seven years but for used cars the maximum maturity usually decreases one year for each year of the cars age.
• No loans or leases are granted for cars more than seven years old. It is possible to prepay the loan and lease partially or in full without any penalty.
• Should the car be sold during the credit period it is possible to move the loan or the lease to another car (if the new car fulfills Avant’s demands) or the new buyer can assume the liabilities under the loan or lease with Avant’s consent.
• It is possible to get an additional loan or lease during the credit period, if the total loan or lease fits within Avant´s requirements.
• The borrower is required to insure the car but he can choose any insurance company.
• Borrowers can choose to have their lease fully in ISK or have it in one of six predefined baskets of currencies. Car loans are only in ISK.

History

Avant hf. (previously known as Sjova fjarmognun hf.) was originally started by Sjova-Almennar tryggingar hf. (Sjova), Iceland’s largest insurance company founded in 1918. Sjova was a subsidiary of Milestone ehf. that owned almost 90% of Askar Capital hf., which is Avant’s current parent company. Avant provides individuals and companies in Iceland with auto loans and auto leases. Avant and Askar Capital are regulated by the Icelandic Financial Supervisory Authority (FME).

Timeline

1918 Sjova founded
1988 Milestone founded in March
1990 Sjova starts lending car loans
2005 Sjova becomes a subsidiary of Milestone ehf.
2005 Sjova fjarmognun founded as a subsidiary of Sjova in December
2006 Sjova fjarmognun formally activated in April
2006 Milestone announced the launch of Askar Capital hf. in November
2006 Askar Capital hf. founded in December
2007 Sjova fjarmognun becomes Avant and becomes a subsidiary of Askar Capital

Combination of currency baskets

Combination of Currency basket AV75, AV50 and AV25