Car loans are part of lifestyle essentials for an average Singaporean. It is difficult to buy a car without a loan these days, as a result of escalating costs and the difficulty of procuring the Certificate of Entitlement (COE). When you are looking for car finance, you need to find a bank that gives you the best interest rates and the most lenient terms. Standard Chartered’s Auto Financing is one of the best car loan plans available in Singapore.
Standard Chartered Auto Financing works on the hire purchase principle, in which the bank buys the car, and allows you to use it on lease. When you finish paying off all the monthly instalments on the loan, the car’s ownership will be transferred to you. This idea is being line with the Shariah principle of Islam.
This means that whether you want to buy a new car or a used car, the bank will fund your purchase. The terms of both the kinds of car finance is similar, though the interest rate on pre-owned car loan would be slightly higher than that on new cars.
|Interest Rate||Margin of Finance||Loan Tenure||Guarantor Requirement|
|3.5%p.a.||Upto 70%||1 year to 7 years||Guarantor Required|
The interest rates offered by Standard Chartered are attractive and dependent on your needs. You will have to contact the bank to know the exact rates applicable to you.
Standard Chartered’s Auto Financing is available in two forms:
To apply for the Standard Chartered auto financing, you need to meet the following parameters:
The Standard Chartered Auto Financing – both new and used car loans – is also available to foreigners. They should have a valid employment pass and be able to produce the required address and income proof.
The documents required to apply for car finance from Standard Chartered Singapore are listed below:
The fees applicable on the bank’s Auto Financing option are listed in the table below:
|Early completion fee||20% of outstanding interest plus 1% of the balance amount|
|Late payment fee||S$60 per instance|
|Interest on late payment||12% p.a. on the unsettled amount every month|
|Copy of Hire Purchase Agreement or log card||S$53.50|
|Request for 4th Schedule (Notice of Intention to Repossess) and 5th Schedule (Notice of Repossession)||S$10.70 per schedule|
You can apply for Standard Chartered Auto Finance by visiting your nearest bank branch and talking to the executive in charge of car loans. You will need to fill in an application form. Don’t forget to carry all the required documents with you.
A car loan calculator tells you how much money you will need to pay every month as the Monthly Instalment based on the total loan amount you take and the tenure of the loan.
Standard Chartered has a Loan Calculator on its website to help you find out how much your monthly instalment would be if you take a new car loan or a pre-owned car loan. This amount is not accurate but is an approximate of the actual amount. The purpose of this calculator is to give you an estimate in order to help you choose the right loan amount and tenure based on how much money you can afford to pay towards the car every month.
To use the Standard Chartered Loan Calculator, you need to click on the right option (New or Pre-owned), enter the loan amount, and the duration of loan (Hire Period). Click on ‘Calculate’ after entering all the numbers, and you will be shown the monthly instalment amount. For example, if you select New Car, and enter the loan amount as S$100,000 for a loan tenure of 7 years, the calculator will tell you that your monthly instalment amount would be approximately S$1,398. For the same amount and tenure, a used car loan will cost you S$1,423 per month.
The following are the key advantages of funding your car with help from Standard Chartered:
Q. If SC car loan is based on hire purchase, does it mean the car isn’t mine?
Technically, the car is owned by Standard Chartered, and you are renting it at a cost. But for all practical purposes, you are the owner of the car and are full responsible for it. However, remember that the car can be seized by the bank if you fail to make repayments regularly or default on the loan.
Q. So if I don’t want the car after using it for a few years, can I give the car back to the bank?
Technically, this is possible. You may need to check with the bank for the exact terms and conditions surrounding return of the car and hire purchase agreement.
Q. Will the bank help me get the COE?
No. You have to approach the car dealer for assistance in procuring a COE. If you are buying a used car, it will already have a COE, but do check the expiry of the existing COE.
Q. Will the Standard Chartered Auto Financing cover my road tax and COE costs?
The bank’s car loans covers 70% of the Open Market Value of the car you intend to buy. It may or may not include the road tax and COE costs.
Q. Is car insurance compulsory?
Yes. You have to get at least a Third Party Liability insurance cover on your car. Comprehensive packages would be better as they cover both third party liability and own damage. You can choose to purchase the Standard Chartered Ultimate Car Protector, which is a comprehensive motor insurance policy underwritten by MSIG Singapore.