Red Bull had been dominant through free practice on Friday and Saturday, and used their carÃ¢â‚¬â„¢s aerodynamic advantage at the Hungaroring circuit to see off rivals Ferrari and McLaren in qualifying as Vettel took pole for the seventh time this season.
The German was over four tenths quicker than team-mate Mark Webber, with the Australian comparing the circuit to Barcelona earlier this year, where the team were also imperious.
“The circuit suits us and it has traditionally not been easy to get right,” said Webber.
“You need to know the track and have the right car. There are no points for Saturday but we have done all we could have done and can be proud of ourselves today.”
Ferrari are third and fourth through Fernando Alonso and Felipe Massa, with Alonso a second slower than the German, while championship leader Lewis Hamilton could only manage fifth as Jenson Button qualified a disappointing 11th, just 0.017 seconds off making it into the final stages of qualifying.
Nico Rosberg was sixth for Mercedes ahead of the Renault pair of Vitaly Petrov and Robert Kubica, as rookie Petrov out-qualified Kubica for the first time.
SauberÃ¢â‚¬â„¢s Pedro De La Rosa continued his good form as he took ninth ahead of WilliamsÃ¢â‚¬â„¢ Nico HÃƒÂ¼lkenberg.
Talking about beating his team-mate for the first time, Petrov said: Ã¢â‚¬Å“We knew our car would be quick here. To work hard, we improved some parts, we brought some new parts.
“Always when you drive around you are never thinking about beating your team-mate, you just focus on your lap time. I know this circuit quite well and this is why I did well today.”
Michael Schumacher had a disastrous qualifying as he crashed out in Q2, and will start 14th on the grid behind Rubens Barrichello and Adrian Sutil.
SÃƒÂ©bastien Buemi returned to out-qualify team-mate Jaime Alguersauri to take 15th, as the Spaniard only managed 17th. Force India’s Vitantonio Liuzzi took 16th.
Of the new teams, Virgin RacingÃ¢â‚¬â„¢s Timo Glock surprised Lotus to take 19th, followed by Heikki Kovalainen and Jarno Trulli, with GlockÃ¢â‚¬â„¢s team-mate Lucas di Grassi taking 22nd.
As expected, Bruno Senna and Sakon Yamamoto brought up the rear.
SundayÃ¢â‚¬â„¢s race begins at 1300BST and consist of 70, 2.72 mile laps with a total race distance of 190.55 miles.
MORE: The latest football news
MORE: The latest tennis news
BIOGRAPHY: Cesc Fabregas