• Car Loan Interest Rates Singapore

    Car Loan BYTES FROM OUR KITCHEN

    Car Loan Interest Rates Singapore

    Car loans help you acquire the vehicle of your dreams. Buying a luxury product like a car requires a lot of money, which not everyone possesses and an auto loan will come to your rescue when you really want to purchase one. You can repay the borrowed money over a period of time along with the rate of interest, which is set by the bank when you take the loan. This interest rate can be either fixed or floating.

    Types of Car Loan Interest Rates

    Fixed Rate of Interest – Here, the rate of interest on your loan amount is fixed during the period for which you borrow the money. If you have a fixed rate of interest, then the amount you have to pay every month will be same and any change in the market rate of interest will not affect your rate.

    Variable Rate of Interest – Here, the rate of interest on your loan amount can change during the period for which you borrow the money. If the market rate of interest fluctuates, the interest on your loan also changes. The rate of interest can increase or decrease leading to a change in your monthly instalments.

    Top Singapore Banks Car Loan Interest Rates

    DBS Car Loan Interest Rates

    DBS bank offers a fixed interest rate on car loans and provides financing up to 60% of the car’s market value.

    UOB Car Loan Interest Rates

    Car Loan Interest Rates
    Tenure (in years) New Car
    Rate per annum Effective Interest Rate (E.I.R) per annum
    1 3.25% 7.04%
    2 3.25% 6.67%
    3 3.25% 6.51%
    4 3.25% 6.40%
    5 3.25% 6.31%

    OCBC Car Loan Interest Rates

    Car Loan Interest Rates
    Tenure (in years) New Car
    Rate per annum E.I.R
    1 2.78 percent 5.09 percent
    2 5.25 percent
    3 5.27 percent
    4 5.27 percent
    5 5.24 percent

    Citibank Car Loan Interest Rates

    Citibank has two types of car loan products. They are Citi Direct and Citi Classic. Citi Direct has floating rates of interest while Citi Classic has a fixed rate of interest.

    Citi Direct
    Car Loan Interest Rate
    Tenure (in months) Interest Rate
    60 1.58% p.a.
    48 to 59 1.68% p.a.
    36 to 47 1.78% p.a.
    24 to 35 1.88% p.a.
    12 to 23 1.98% p.a.
    Citi Classic
    Car Loan Interest Rate
    Tenure (in years) Interest Rate
    1 to 5 2.28% p.a.

    Lowest Car Loan Interest Rates in Singapore

    Citibank currently provides the lowest rate of interest on car loan in Singapore through its Citi Direct car loan product. The rate of interest is as low as 1.58 percent per annum if you borrow money for a period of 60 months.

    Car Refinance Interest Rates -

    OCBC Car Refinance Interest Rates

    OCBC is one of the major bank which provides car loan as well as car refinancing loan in Singapore.

    Tenure (in years) Rate E.I.R
    3 1.60 percent per year 3.25 percent
    4 3.21 percent
    5 3.18 percent
    Up to 100 percent financing of the pending balance

    New Car versus Used Car Loan Interest Rate

    There are many banks, car dealers and financial institutions in Singapore that provide car loans for new cars as well as used cars. The rate of interest charged on the loan is different for both the car types. Used car loans have higher interest rates when compared to the new car loan interest rates because banks consider it as a risky investment. The value of used cars depreciate in a short time period, which is why banks tend to charge a high rate of interest on them in order to earn more money in lesser time and reduce lending risks.

    In the tables below, you can see the difference in the rates of interest charged by some of the banks on new and used car loans in Singapore.

    Interest Rates Charged by UOB on New & Used Car Loan

    Car Loan Interest Rates
    Tenure (in years) New Car Used Car
    Rate per annum Effective Interest Rate (E.I.R) per annum Rate per annum Effective Interest Rate (E.I.R) per annum
    1 3.25% 7.04% 3.875% 8.39%
    2 3.25% 6.67% 3.875% 7.92%
    3 3.25% 6.51% 3.875% 7.72%
    4 3.25% 6.40% 3.875% 7.58%
    5 3.25% 6.31% 3.875% 7.46%

    Interest Rates Charged by OCBC on New & Used Car Loan

    Car Loan Interest Rates
    Tenure (in years) New Car Used Car
    Rate per annum E.I.R Rate per annum E.I.R
    1 2.78 percent 5.09 percent 2.98 percent 6.46 percent
    2 5.25 percent 6.12 percent
    3 5.27 percent 5.98 percent
    4 5.27 percent 5.88 percent
    5 5.24 percent 5.81 percent

    Interest Rates Charged by HLF on New & Used Car Loan

    Car Loan Interest Rates
    Tenure (in years) New Car Used Car
    Rates per annum Effective Interest Rate (E.I.R) per annum Rates per annum Effective Interest Rate (E.I.R) per annum
    1 2.68% 5.81% 2.88% 6.25%
    2 2.68% 5.51% 2.88% 5.92%
    3 2.68% 5.39% 2.88% 5.78%
    4 2.68% 5.31% 2.88% 5.69%
    5 2.68% 5.24% 2.88% 5.62%

    Ways to Get a Car Loan with Low Interest Rates

    In order to get a car loan with a low rate of interest, you can use the following tips –

    Compare – You should compare the rates of interest charged by banks and financial institutions in Singapore. Comparing will help you discover the bank which charges the lowest rate of interest on car loans in the country. It will help you compare other features as well, thus helping you choose a lender who will give you a lower rate with a lot of benefits. You can compare the rates using third party websites online.

    Credit Score – You must have a good credit score in order to get a lower rate of interest from banks. Your credit score assures banks and other lenders of your credibility. If you have a higher score, they will be sure that they will get back their money from you on time. In order to have a good score, check your credit report regularly and rectify the mistakes in it before applying for a car loan. Also, pay your bills and other loans on time in order to increase your score.

    Shorter Loan Period – If you take the loan for a shorter period of time, you will have to pay a low interest on it.

    Secured Loan – Banks charge low rates of interest from people who choose to take a secured loan. If you provide a collateral at the time of getting the loan, your loan will become a secured loan which means that your lender will take over the collateral in case you fail to repay the money.

    These are some of the ways to get a lower rate of interest. However, ensure that when you are taking a car loan, you look at the total cost of the loan instead of focusing only on the monthly instalments.

    Cost of owning a car in Singapore

    Owning a car in Singapore is very difficult because of the costs associated with it. In the Island nation, the government expects the people to use public transport more in order to prevent the roads of the country from becoming too congested. Apart from the money you pay for buying the car, you also have to pay for other things like obtaining the COE (Certificate of Entitlement), fuel, road tax, cost of maintenance, parking fee, etc. It is impossible to say how much one has to pay exactly, but one thing is for sure that the prices are going to rise.

    Before buying a car, be sure that you really need it otherwise it can have a huge impact on your finances. If you can manage the expenses, you do not have to worry.

    News About Car Loan Interest Rates

    • Renault launches All-Electric, Grand Tourer Concept Trezor at Paris Motor Show

      Renault recently launched the Grand Tourer concept, all-electric Trezor at the recently concluded 2016 Paris Motor Show. The Trezor sports a sensational look and is symbolic of Renault’s simple yet appealing design elements. The vehicle accelerates from the 0-100 kmph mark in less than 4 seconds and delivers a peak power of 350 bhp with a torque of 380 Nm. Renault’s Trezor comes with two batteries, each of which are equipped with their own cooling systems and an energy recovery system that is brake-operated. The car’s motor is operated by Renault’s e.dams and comes with three modes- autonomous, neutral and sport.

      10th November 2016

       
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