• Best Car Loan Singapore

    Car Loan BYTES FROM OUR KITCHEN

    Car loans have become more affordable since last year when the Monetary Authority of Singapore (MAS) decided to relax some of the restrictions on the existing loans. One of the biggest advantages has come in the form of car loan tenures that have been increased from 5 years to 7 years.

    Since March last year, leading banks in Singapore now offer car loans at up to tenures of 7 years with a maximum loan quantum of 70% of the purchase price or the valuation price. Banks also offer additional benefits such as early settlement of loan, promotions on car loan interest rates and more.

    Best Car Loans by Banks in Singapore

    Here are some of the popular car loans in Singapore that offer low interest rates as well as additional benefits to customers.

    Maybank Car Loan

    Get maximum financing of up to 70% of the purchase price of the car with a tenure extending up to 7 years. Enjoy fixed repayments on the loan with a flat-rate interest scheme throughout the loan tenure.

    Here are the advantages of the Maybank Car Loan:

    • You can get maximum financing of 70% on the car loan for a car which is up to 20 years old.
    • You can choose a loan tenure of up to 7 years.
    • Interest rates start from 3.25% p.a.
    • Maybank also offers Islamic Auto Finance (Auto Finance-i) with similar features and benefits.
    • Even foreigners are eligible to apply for the Maybank Car Loans.

    Standard Chartered Auto Financing

    Standard Chartered Bank offers financing on new as well as used cars with flat interest rates up to a tenure of 7 years. You can also choose from a variety of payment options to make repayments on your car loan.

    Here are the advantages of Standard Chartered Auto Financing:

    • Auto financing options are available for new cars as well as pre-owned cars. Maximum financing offered is 70% based on the Open Market Value (OMV) of the car.
    • The bank offers Applied Interest Rate (AIR)/flat rate of 3.5% p.a.
    • You can choose a loan tenure starting from 1 year and up to 7 years.
    • Repayment options include GIRO payments, cheque, online banking payments, NETS payments at AXS stations and cash payments at any of the bank’s Cash Deposit Machines.
    • Early full settlement option is available.
    • Even foreigners are eligible to apply for the Standard Chartered Auto Financing loan.

    OCBC Car Financing

    OCBC is one of the few banks that offers the options of financing as well as refinancing of car loans.

    Here are the advantages of OCBC Car Financing:

    • Maximum financing options:
      • New Car Financing - Maximum financing of 70% of the total price of your car.
      • Car Refinancing - Maximum financing of 100% of the outstanding balance on your current loan.
    • Repayment period of up to 7 years for both, car financing as well as OCBC car refinancing options.
    • Interest rate on the loan:
      • New Car Financing – Applied Interest Rate of 2.78% p.a. Effective Interest Rate (EIR) ranges between 5.09% p.a. and 5.27% p.a.
      • Car Refinancing - Applied Interest Rate of 2.08% p.a. Effective Interest Rate ranges between 4.03% p.a. and 4.52% p.a.

    UOB Car Loan

    UOB offers one of the most unique approaches to car loans by allowing you to pay just 50% of your monthly instalments with the option to trade your current car for a new car after 5 years.

    Here are the advantages of the UOB Car Loan:

    • Obtain financing up to 70% of the bank’s valuation or the purchase price of the car, depending on whichever of the two is lower.
    • Choose from repayment tenures extending up to 7 years.
    • UOB Car Loan is applicable on new cars as well as used cars (not older than 10 years).
    • Interest rates on UOB Car Loan:
      • New Car – Applied Interest Rate of 3.250% p.a. Effective Interest Rate ranges between 6.170% p.a. and 7.040% p.a.
      • Used Car - Applied Interest Rate of 3.875% p.a. Effective Interest Rate ranges between 7.270% p.a. and 8.390% p.a.
    • UOB HP50 Car Loan – Choose to pay just 50% of your car loan monthly instalments for a period of 59 months after which you can choose one of the options below:
      • Pay the final instalment to redeem your vehicle.
      • Trade in your car at the prevailing market price and get a new car at the dealership.
      • Apply for the scheme, “sell and lease back” with the dealership.
      • The flat interest rate on this loan is 3.50% p.a.

    DBS Car Loan

    DBS offers their car loan product for the purchase of new as well as used cars with maximum financing of 70% with long tenures of up to 7 years.

    Here are the advantages of the DBS Car Loan:

    • The loan quantum is pegged to the OMV in the following ways:
      • If the OMV of your car is S$20,000 or above – Get financing of 70% of the valuation price or the purchase price, depending on whichever of the two is lower.
      • If the OMV of your car is below S$20,000 - Get financing of 60% of the valuation price or the purchase price, depending on whichever of the two is lower.
    • Choose a loan tenure between 1 year and 7 years.
    • This car loan is available on new cars and used cars that are less than 10 years old.

    Compare best car loans in Singapore

    Here’s an illustration of what the best car loan providers in Singapore offer their customers:

     Car Loan 

    Maximum loan financing

    Interest rate

    Tenures

    Other benefits

    Maybank Car Loan

    Up to 70% of the purchase price or the valuation price, depending on whichever of the two is lower.

    Starting from 3.25% p.a.

    1 year to 7 years.

    The bank also offers Islamic Auto Finance (Auto Finance-i) with similar features.

    Foreigners are eligible to apply.

    Standard Chartered Auto Financing

    Up to 70% of the Open Market Value (OMV) of the car.

    Flat interest rate of 3.5% p.a.

    1 year to 7 years.

    Early full settlement option.

    Numerous repayment options such as GIRO, cheque, online banking, AXS stations and cash payments.

    Foreigners are eligible to apply.

    OCBC Car Financing

    New Car Financing - Maximum financing of 70% of the total price.

    Car Refinancing - Maximum financing of 100% of the outstanding balance.

    New Car Financing - AIR of 2.78% p.a. EIR ranges between 5.09% p.a. and 5.27% p.a.

    Car Refinancing - AIR of 2.08% p.a. EIR ranges between 4.03% p.a. and 4.52% p.a.

    1 year to 7 years.

    Apply via mail or request a bank representative to call you.

    Foreigners are eligible to apply.

    UOB Car Loan

    Up to 70% of the bank’s valuation or the purchase price of the car, depending on whichever of the two is lower.

    New Car Loan - AIR of 3.250% p.a. EIR ranges between 6.170% p.a. and 7.040% p.a.

    Used Car Loan - AIR of 3.875% p.a. EIR ranges between 7.270% p.a. and 8.390% p.a.

    UOB HP50 Car Loan – Flat interest rate of 3.50% p.a.

    1 year to 7 years.

    UOB HP50 Car Loan – Pay 50% of your car loan monthly instalments for a period of 59 months after which you can switch to another car, redeem this car by paying the final instalment or “sell and lease back” with the dealership.

    DBS Car Loan

    Up to 70% of the valuation price or the purchase price of the car, depending on whichever of the two is lower.

    Not available.

    1 year to 7 years.

    Used car financing available.

    How to choose the best car loan in Singapore

    Choosing a car loan in Singapore is not very hard because most banks offer the same features and benefits such as maximum financing of up to 70% and loan tenures extending to 7 years. However, here are a few tips that can help you choose a car loan that is best suited for you:

    • Most banks in Singapore offer used car loans for cars not older than 10 years. But, if the car you wish to purchase is older than 10 years, Maybank offers their Car Loan for used cars up to 20 years old.
    • If you’re not looking to keep your car for a long period of time after purchase, then consider the UOB HP50 Car Loan. This loan will allow you to just make half repayments on your monthly instalment amount for 59 months after which you can trade in your existing car for a brand new one.
    • If you’re looking for a car loan on Islamic Banking, you could consider applying for the Auto Finance-I loan offered by Maybank that has similar features offered on the conventional banking car loan.
    • If you’re looking to refinance your existing car loan, consider OCBC Refinancing Loan that offers low interest rates and up to 100% financing of your outstanding balance.
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