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A finance lease for your car – you pay monthly instalments and become the full owner at the end of the contract. Interest from 1.45% + EURIBOR, term 12–84 months.
Car hire purchase (finance lease) is the most popular way to finance a car in Lithuania. In 2026, over 60% of new and used cars are bought through leasing products. Unlike an operating lease, the car becomes your property when the contract ends – this is the key and most important difference.
Pick a car – new or used up to 10–15 years old
The bank or leasing company buys the car on your behalf
You pay monthly instalments according to the schedule set in the contract
Once you pay the residual value, the car becomes your property
| Criterion | Hire Purchase | Operating Lease | Loan |
|---|---|---|---|
| Car after contract | Your property | You return it | Your property |
| Monthly instalment | Medium | Lowest | Highest |
| Mileage limit | None | 15–25k km/yr | None |
| Down payment | 10–25% | 0–10% | Optional |
| KASKO insurance | Mandatory | Included | Optional |
| Interest (from) | 1.45% | None (fixed) | 4.5% |
| VAT deduction (business) | Partial | Full | No |
| Depreciation risk | Yours | The company's | Yours |
In Lithuania, all major banks offer car hire purchase. Here are their terms:
| Bank | Interest from | Term | Down payment | Amount |
|---|---|---|---|---|
| Swedbank | 1.45% + EURIBOR | 12–84 mo. | from 15% | €3,000–100,000 |
| SEB | 1.75% + EURIBOR | 12–72 mo. | from 15% | €3,000–80,000 |
| Luminor | 2.29% + EURIBOR | 12–84 mo. | from 10% | €2,000–75,000 |
| Citadele | 2.49% + EURIBOR | 12–72 mo. | from 15% | €3,000–70,000 |
| Bigbank | 3.49% + EURIBOR | 6–96 mo. | from 10% | €7,000–75,000 |
| Mogo | 3.99% | 12–84 mo. | from 0% | €2,000–15,000 |
* Base interest rates shown. Exact terms depend on the car's age, value and the client's creditworthiness. Updated March 2026.
What a typical hire purchase for a used car looks like:
Most Lithuanian banks finance not only new but also used cars through hire purchase. It is one of the most popular ways to acquire a quality used car without spending the entire amount at once.
Tip: before submitting an application to the bank, check the car's history via a VIN check — this protects you from cars with rolled-back mileage or hidden defects. Also use the car valuation calculator to make sure the price matches the market value.
Hire purchase (also called a finance lease) is a car financing method where a bank or leasing company buys the car you chose and 'leases' it to you for the contract period. You pay monthly instalments, and at the end of the contract, after paying the residual value, you become the full owner of the car.
The main difference: with hire purchase you become the owner at the end of the contract, while with an operating lease you return the car. Hire purchase: higher monthly instalments, but the car is yours. Operating lease: lower instalments, mileage limits, but no depreciation risk. For business, hire purchase is often beneficial because of the VAT deduction option.
In 2026, banks in Lithuania offer: Swedbank – from 1.99% + EURIBOR; SEB – from 2.29% + EURIBOR; Luminor – from 1.99% + EURIBOR; Citadele – from 2.49% + EURIBOR. The exact interest depends on the car's age, the size of the down payment and your creditworthiness.
Most banks require a 10–20% down payment. Some companies (e.g. Mogo) offer hire purchase with no down payment, but in that case the interest is higher and the monthly instalments are larger. The recommended down payment is 15–25%, which reduces the monthly burden and the total financing cost.
Yes – most leasing contracts allow early buyout. You need to pay off the remaining principal and, depending on the bank, an early termination fee (usually 1–2% of the remaining amount). Before terminating the contract, calculate whether it is worth paying the fee or simply finishing the contract.
Yes – most banks finance used cars up to 10–15 years old (by the end of the contract). The minimum car value is usually from €2,000–3,000. For used cars, interest is 1–2 percentage points higher than for new ones, and a car valuation is mandatory.
For individuals: an ID document, an income certificate or Sodra statement (3–6 months), car details (make, model, price, seller). For companies: company registration documents, financial statements, the manager's ID document. Most banks let you submit the application online.
If you run into financial difficulties, first contact the bank — you can often get a payment deferral (1–3 months) or change the payment schedule. If you fail to pay for a long time, the bank has the right to repossess the car, and you will lose the instalments paid and the down payment.
Use our free leasing calculator and find out the exact monthly instalment based on your car's price.
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