To make a Car Leasing in Greece, whether you go through a dealership or a local bank, you need to submit a complete application with your Greek tax identification number (AFM), and you'll be driving a new car. Here's everything you need to know before signing the contract.
What is the car leasing market like in Greece?
In Greece, leasing works like a long-term rental : You drive a new car without owning it. You go through a dealership or a local bank, at Athens or in major cities. .
The most active institutions in this market are Piraeus Bank, Alpha Bank and Eurobank. Importers such as Toyota Hellas Where BMW Hellas also offer their own deals through their agencies.
Contracts generally last for 24 to 60 months depending on the provider. The lessor remains the owner of the vehicle until the end of the contract, and you make your monthly payments to them each month.
When the contract ends, you have three options:
- buy back the car from the residual value as planned; ;
- return the vehicle and leave with a newer model; ;
- start over with new monthly payments on a different vehicle.
A major advantage over a traditional auto loan: the monthly payment combines the following into a single payment: vehicle price, l'insurance and the game's maintenance costs. With a traditional loan, you're fully responsible for these last two expenses.
Please note: You'll need to pay an performance bond when you're putting together your application, which often corresponds to 3 months' rent. Some landlords also require a credit card to cover this guarantee. The check or security deposit will be refunded to you at the end of the contract.
To sign, Greek banks and branches require a AFM (Greek tax ID number), a driver's license a valid ID, proof of income, and, in most cases, proof of residence in Greece.
It works in much the same way as the Car Leasing in Spain or the car leasing in Germany.
What are the advantages and disadvantages of leasing?
Leasing gives you access to a new car for everyday driving in Greece—whether in the city, on national highways, or out to the islands. It’s often the best option if your budget doesn’t allow for a cash purchase or a traditional auto loan.
Here are the main benefits:
- A wide selection of recent models at Greek dealerships and agencies.
- No contribution required in most offers.
- Regarding the fixed monthly payments, which are easier to fit into your budget.
- The possibility of buy back the vehicle at the end of the contract.
The monthly amount depends on the price of the car, the estimated mileage, and the selected term. The longer the contract, the lower the monthly payments, but the higher the total cost.
On the downside, leasing remains a commitment to several years. If you choose a mileage-based plan, your trips are limited: every kilometer over the limit results in additional costs. And until you've paid off the vehicle, you don't own it.
Why was your lease application denied?
It’s more common than you might think for an application to be denied, especially for applicants who choose the buyout option at the end of their contract. In Greece, your application goes through two consecutive filters : First, the dealership or agency reviews your application, and then the financial institution (the lessor) makes the final decision.
Specifically, several factors were carefully examined:
- Your debt-to-income ratio, which was examined during the feasibility analysis.
- Your borrowing capacity and the consistency of your income.
- Your AFM (Greek tax ID number), which is required by most banks.
- Your driver's license valid.
- A proof of residence, highly recommended even if it is not always required.
The most common reasons for rejection are a excessive debt, income deemed unstable, or an incomplete application. The most challenging case remains that of the nonresident : Without an AFM or proof of stable income in Greece, it becomes very difficult to secure a long-term car lease.
In that case, it’s best to seek advice directly from a local agency or service provider before submitting your application. If you meet all these requirements, approval is usually granted without any problems.
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