|Lender||Annual Interest Rate||Effective Interest Rate||Processing Fee||Monthly Payment|
|Hong Leong Finance||2.28%||0.00%||S$297|
|Tokyo Century Leasing||2.78%||0.00%||S$301|
You need to check the terms and conditions for every car loan that you look into. We’ve taken the liberty of preparing some of that data for you below:
|Maybank Car Loan||Attractive Interest Rates|
|POSB Car Loan||Borrowing and Insurance|
|DBS Car Loan||Transparent Rates|
|CreditMaster Car Loan||Residents and Foreigners|
|HLF New Car Loan||New and Old Cars|
A car that has yet to reach 10 years of age is a PARF car. You can get both PARF and COE rebates with a PARF car. Your received PARF will vary based on the model and engine capacity that your car has. (between 50% and 75%).
A car that is over ten years old is not eligible for PARF. These cars are referred to as COE cars. This occurs when you renew your COE. You can only claim a COE rebate after having de-registered your car.
In Singapore you can get anywhere up to 70% of your car’s value as a car loan. You will have to meet the following eligibility criteria:
Never borrow more than you need. The more you borrow, the more interest you will need to pay over time. Borrowing less allows you to avoid that extra interest.
A residual balloon payment allows you to hold off paying the vast majority of your interest fees until the very end of your repayment period. For example, if you borrow $30,000 and leave a residual balloon payment of $5,000, your interest payments will be calculated based on $25,000 instead. This is beneficial so long as you plan for the upcoming balloon payment ahead of time.
The longer your loan term, the less you need to repay at each period. You will need to pay more interest this way, but it does make it easier to manage your repayments.
Assuming you are eligible, anyone can apply for a car loan. You must be above 21 as well as a citizen or permanent resident of Singapore. On top of that, you need proof that you earn a reasonable income and have a valid work permit.
Most car loan deposits require at least 30% to 40% of the total cost as a deposit. Generally, you need to pay 30% for cars worth less than $20,000 and 40% for cars worth more than $20,000.
There is a limit to how much you can borrow for financing your car. The limit varies depending on your car’s Open Market Value, or OMV. Your car’s OMV is how much you could get for it if you ignore taxes and other expenses that you will need to go through.
If your OMW is above $20,000, you can borrow up to 60%. If the OMW is below $20,000, you will be able to borrow up to 70%.
It is much more difficult to get a car loan when you have bad credit. Some lenders will decline your application simply because of this factor.
That being said, other lenders would be more likely to accept an application from you. You may want to talk with a car finance specialist first. This way, you can find the most suitable lenders based on your financial situation and have a higher chance of getting your loan approved.
Some dealers will help sort out an insurance for you. They’ll help you apply for one to make things easier for you. Typically, they will link you with companies that they are affiliated with.
There may be better deals out there, so it may pay off to look for your own insurance. This will help make an informed decision.
Excellent! ROSHI has found 9 Loans that suit your criteria.
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Standard Chartered Auto Financing (Used car purchases)
Standard Chartered Auto Financing (New car purchases)
Tokyo Centure Leasing Car Finance
Maybank Car Loan
Hong Leong New Car Loan
DBS Car Loan
OCBC Car Loan (New car purchases)
MYHP (Auto Loan)