The service
There is a great deal to keep track of when a vehicle changes hands. Frágangur has packed every one of those steps into a single electronic service that completes the whole thing for both buyer and seller as fast as it can be done.
The process takes anywhere from 15 minutes to a few days, depending on whether a loan has to be applied for, an existing loan paid off, and public charges settled. Whether you order outside the banks' opening hours matters too.
You can trade a vehicle in against another one, and you can apply to refinance a vehicle you already own.
The first thing Frágangur does once an order has been paid for is to check the status of the vehicle and of any public charges on it. The vehicle history and any record of accidents or damage is then sent to the buyer and the seller, together with a draft purchase agreement.
We also confirm that the vehicle is free of liens before the transaction is completed.
Once the vehicle registry data and the draft agreement have been delivered, Frágangur sends the purchase agreement to the buyer and the seller. If the vehicle has more than one registered owner, the agreement goes to the co-owner for signature as well.
After the documents have been signed, Frágangur can get to work and complete the entire process without the buyer or the seller having to turn up anywhere to sign.
The one exception is a buyer taking a car loan secured against a company (not a finance agreement) with certain lenders — that buyer has to attend in person to sign.
A written purchase agreement matters enormously to both buyer and seller. It protects the interests and the legal position of everyone involved if something unexpected comes up later.
Every major lender in Iceland requires that a licensed vehicle dealer prepares the purchase agreement and the bill of sale before a loan is approved. Frágangur employs licensed vehicle dealers holding credit intermediary licences, who make sure all document processing complies with the law.
Frágangur applies for the loan with whichever lender the buyer chooses. We have partnership agreements with all the major lenders in Iceland.
You can use our calculator to see estimated monthly payments, along with which loans are available and on what terms given the age of the car and other factors.
Frágangur registers and deregisters the insurance on every vehicle in the transaction. The buyer picks the insurer they want, and Frágangur moves the policies over to the vehicle's new owner.
If the buyer finances the vehicle with a finance agreement or a car loan, comprehensive insurance is required.
Finally, Frágangur makes sure the vehicle charges have been settled between the parties and reports the change of ownership to the Icelandic Transport Authority (Samgöngustofa).
Please note that it is not safe to hand the vehicle over until the ownership transfer has gone through.
We usually reply within a few minutes during opening hours.
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