Car leasing hits record in Estonia ahead of 2025’s vehicle tax

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In anticipation of the car tax set to take effect next year, a record-breaking €48 million worth of passenger vehicles were leased in Estonia in October, marking the highest volume of car leases ever issued to households in the country.

Compared to September, the volume of car leases increased by nearly 27 percent, and compared to October of last year, the rise was a staggering 76 percent, according to data from the Bank of Estonia.

“The anticipation of the car tax coming into effect next year has been a major driver behind this growth.However, factors like nominal wage increases have also supported the uptake of leases,” said Bank of Estonia economist Gaili Grüning.

The average interest rate on car leases in October was 4.5 percent, down by 0.28 percentage points from the previous month and by 1.17 percentage points compared to the same month last year.

Read more: ERR.EE

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