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Lowest Car Loans Interest Rates (September 2024)
| Lender | Annual Interest Rate | Effective Interest Rate | Processing Fee | Monthly Payment |
|---|---|---|---|---|
| Hong Leong Finance | 2.28% | 0.00% | S$297 | |
| Standard Chartered | 2.48% | 0.00% | S$298 | |
| OCBC Bank | 2.78% | 0.00% | S$301 | |
| DBS | 2.78% | 0.00% | S$301 | |
| Maybank | 2.78% | 0.00% | S$301 | |
| Tokyo Century Leasing | 2.78% | 0.00% | S$301 | |
| Standard Chartered | 2.78% | 0.00% | S$301 |
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Car Loans Basics
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Tips and Hints
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FAQs
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:
When buying a brand-new car, you can get a new car loan from a dealer or bank. These loans are usually repaid over seven years or less. You generally need quite a good credit score for this type of car loan.
You can also get a used car loan via a dealer or bank. Your loan offer will vary depending on how old the used car is. The interest rate will also be higher than that of a new car loan.
If your vehicle is for commercial use rather than personal use, you can apply for a commercial car loan. Business vehicles, such as taxis, company cars, etc., would fall under this category.
Refinancing a car loan works just like refinancing a home loan. You’re basically swapping from your current lender to a new one with a better interest rate or some other advantage. The new lender pays off your old loan and then gives you a better one.
Lowest Car Loan Rates in Singapore (updated September 2024)
| Car Loan | Perks | |
|---|---|---|
| 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:
- • You must be a Singapore national or permanent resident.
• Some foreigners can acquire a car loan so long as they have a work permit with a
• year or more of validity.
• You must be at least 21 years old.
• You must have a good credit score.
• You’ll also need an annual income of at least $20,000. Your monthly income needs to
• be above the allowable total debt servicing ratio or TDSR
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.
Car Loan Total Repayments Overview ($70,000)
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Standard Chartered Auto Financing (Used car purchases)
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Base Interest Rate
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Standard Chartered Auto Financing (New car purchases)
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Base Interest Rate
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AmountInterest Rate (p.a.)
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Tokyo Centure Leasing Car Finance
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Base Interest Rate
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AmountInterest Rate (p.a.)
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Age requirement21 and above
Maybank Car Loan
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Base Interest Rate
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AmountInterest Rate (p.a.)
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Eligibility
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Age requirement21 and above
Hong Leong New Car Loan
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Base Interest Rate
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AmountInterest Rate (p.a.)
Fees and Charges
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Eligibility
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Age requirement21 and above
DBS Car Loan
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Base Interest Rate
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AmountInterest Rate (p.a.)
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OCBC Car Loan (New car purchases)
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Base Interest Rate
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AmountInterest Rate (p.a.)
Fees and Charges
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Eligibility
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Age requirement21 and above
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Base Interest Rate
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AmountInterest Rate (p.a.)
Fees and Charges
Cheque Book Fee
