Car loan vs HFSA reference construction

Some car financiers do not fund the Financial Services Authority’s expectations as at the end of 2008, meaning they can still finance cars offered at the proposed 20 percent deductible or just offset cars.

May require leasing companies or their refinancing companies


A new resolution is expected in the case, and the HFSA may require leasing companies or their refinancing companies to provide up to 100% extra reserves. The Committee of the Hungarian Leasing Association evaluates the practical experience of the December HFSA proposal, which seeks to open a new path for the car financing market.

The HFSA has developed a so-called the reference structure, according to which the own funds in car financing must be at least 20 percent (20% of the value of the official list price of the car. The HFSA term is up to 8 years, the monthly installment is uniform (annuity), the interest rate is unchanged in the reference structure.

Reference Design:

  • minimum 20% self-sufficiency
  • up to 8 years maturity
  • even installments

Exceeding any of the recommended conditions is considered risky


By the HFSA and has predicted that it will require an additional provision of 50-100% of the capital requirement of its leasing company for car loans disbursed after 1 January 2009 to the refinancing company.

A number of questions have recently been raised in professional circles about the recommendation, such as how the prices of the Eurotax catalog can be treated as market prices and how new cars are priced following the current huge discounts from dealers and importers.

It is important to note


That the Financial Supervisory Authority has not issued a prohibition provision, merely informing them of the consequences of extra burdens on someone other than those recommended: if a financier assumes additional risk, he can do so, but only by creating additional reserves.

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