Financing a car in Singapore is an expensive investment
Car owners in Singapore are likely to agree that purchasing a car is a hefty investment. With the rocket-high prices of the Certificate of Entitlement (COE) – which gives you the right to purchase a car – coupled with the actual purchase value of the car, you are better off taking public transportation instead.
However, there are some Singaporeans (and perhaps foreigners) who do see the value in purchasing a car.
Get a car loan to help offload some of that financial burden
Whether it is for family reasons or work-related reasons, there are various ways in which you can finance the purchase of a car without burning a hole in your pocket.
The easiest and most common method is to get a car loan from a bank or financial institution.
What is a car loan?
A car loan is a secured loan offered by banks or financial institutions for you to purchase a vehicle of your choice. Very often, the car loan is secured against your purchased vehicle. This essentially means that if you are unable to repay your car loan, the lender (be it the bank or financial institution) has the right to seize your vehicle. The lender typically holds ownership of your vehicle until the loan amount is fully paid off.
Where can I get a car loan in Singapore?
If you have done your due research and would like to go ahead in getting a car loan, here are some banks and financial institutions that offer car loans in Singapore.
Car Loan Provider |
DBS Bank |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.dbs.com.sg/personal/promotion/carloan-online |
Address | View branch locations here |
Contact | Contact here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
Hong Leong Finance |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.hlf.com.sg/personal/loans/new-car-loans.html |
Address | View branch locations here |
Contact | View branch contact details here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
Maybank Singapore |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.maybank2u.com.sg/en/personal/loans/car-loan/car-loan.page |
Address | View branch locations here |
Contact | View branch contact details here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
OCBC Bank |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.ocbc.com/personal-banking/loans/car-loans |
Address | View branch locations here |
Contact | View contact details here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
Standard Chartered Bank |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.sc.com/sg/borrow/loans/auto-financing/ |
Address | View branch locations here |
Contact | View contact details here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
UOB Bank |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.uob.com.sg/personal/borrow/carloans/index.html |
Address | View branch locations here |
Contact | 1800-388-2121 or contact via form here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
Tokyo Century Leasing Singapore |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://tcls.com.sg/ |
Address | Cross Street, #09-04/05 Manulife Tower, Singapore 048424 |
Contact | Contact here |
Operating Hours | Mon – Fri: 9am – 5.30pm |
Car Loan Provider |
Hitachi Capital Asia Pacific |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | http://www.hitachi-capital.com.sg/consumer/auto/index.html |
Address | View branch locations here |
Contact | View contact details here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
BST Credit |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.bstcredit.com.sg/apply-car-loan/ |
Address | Blk 131 Jurong Gateway Road, #01-251, Singapore 600131 |
Contact | 65 6299 1782 [email protected] |
Operating Hours | Mon – Sat: 11:00am – 8:00pm Closed on Sundays & Public Holidays |
Car Loan Provider |
SG Cash N Cars |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.sgcashncars.com/car-loan-financing/ |
Address | 11 Sin Ming Road Thomson V Two, #B3-09 Unit 1, 575629 |
Contact | Contact via form here |
Operating Hours | Mon – Fri: 10am – 6pm |
Car Loan Provider |
Sing Investments & Finance |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.sif.com.sg/car-loan/ |
Address | View branch locations here |
Contact | View contact details here |
Operating Hours | View branch opening hours here |
Car Loan Provider |
Capitall |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://capitall.com.sg/hire-purchase-car-loan/ |
Address | 35 North Canal Road, #02-01 Singapore 059291 |
Contact | 65 6333 6000 |
Operating Hours | Mon – Fri: 09:00AM – 6:00PM
Sat, Sun and Public Holidays: Closed |
Car Loan Provider |
HL Bank |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.hlbank.com.sg/en/personal-banking/loans/auto-loan/hire-purchase-loan.html |
Address | 7 Wallich Street, #B1-25 and B1-26 Guoco Tower, Singapore 078884 |
Operating Hours | Monday to Friday – 9:00am to 4:00pm
Saturday, Sunday & Public Holidays – Closed |
Car Loan Provider |
MoneyMax Leasing |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://moneymaxleasing.com/ |
Address | 7 Changi Business Park Vista, SOOKEE HQ S(486042) |
Contact | 65 6280 0808 |
Operating Hours | Daily, 8.30am – 6pm |
Car Loan Provider |
VINCAR |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.vincar.com.sg/services/in-house-car-financing/ |
Address | View locations here |
Contact | Contact via form here |
Car Loan Provider |
Lendela |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://sg.lendela.com/ |
Address | Found8 Prinsep, 128 Prinsep St, #01-01, 188655 Singapore |
Contact | 65 8201 0158 / +65 9670 1595 [email protected] |
Operating Hours | Daily, 9am – 6pm |
Car Loan Provider |
CreditMaster |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.creditmaster.sg/ |
Address | #01-50 Park Rd, People’s Park Complex, Singapore 059108 |
Contact | 6748 1338 [email protected] |
Operating Hours | Daily, 11am – 8pm |
Car Loan Provider |
Speed Credit |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.speedcredit.com.sg/ |
Address | 50 Ubi Ave 3, #01-01/02, Frontier Building, Singapore 408866 |
Contact | 65 9851 8281 |
Car Loan Provider |
Accord Motoring |
Speciality |
Services: COE Renewal Loan-New & Used Vehicle Loan-Refinance Loan-Commercial Vehicle Loan |
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://coecarloan.com.sg/ |
Address | 170 Upper Bukit Timah Road #08-01 Bukit Timah Shopping Centre Singapore 588179 |
Contact | Phone: +65 6469 3910 Email: [email protected] |
Operating Hours | Mon – Fri: 9am – 7pm; Sat: 9am – 2pm |
Car Loan Provider |
Singapura Finance |
Speciality |
|
Pricing | Enquire for applicable loan amount and interest rate |
Website | https://www.singapurafinance.com.sg/car_loan.php |
Address | View branch locations here |
Contact | View branch opening hours here |
Operating Hours | Mon to Fri: 0900h-1630h Sat: 0900h-1200h |
What are the factors that contribute to the cost of purchasing a car?
Many of us are aware that the crazy high COE prices tend to jack up the cost of purchasing a car. However, did you know that there are other factors that contribute to the overall cost of purchasing a car as well?
Here is a list of components that could possibly contribute to the hefty price tag on your choice of car:
Open Market Value (OMV)
Open market value is the actual value of your car excluding local-specific taxes and surcharges, such as Goods and Services Tax (GST) and COE.
The car’s OMV is inclusive of the purchase price, insurance, and freight and delivery of your car to Singapore.
Certificate of Entitlement (COE)
COE is a legal document that entitles you the right to own and use a vehicle in Singapore for either 5 or 10 years depending on your vehicle category. This is also where the bulk of financing your car purchase would come from.
The COE cost tends to fluctuate depending on market demand and supply.
Additional Registration Fee (ARF)
Additional registration fee is a tax that is payable upon registration of your car. The amount of ARF that you have to pay is dependent on your car’s OMV and is minimally 100% of the OMV.
PARF (Preferential Additional Registration Fee)
PARF is a rebate that you receive if you decide to deregister your vehicle before the 10-year mark. The amount of rebate is pegged to the remaining OMV of your car at the point of deregistration.
Excise Duty
Excise duty is an additional tax that you have to pay when purchasing certain goods such as alcohol or tobacco. For cars, this is pegged at 20% of the car’s OMV.
Goods & Services Tax (GST)
GST is essentially the consumption tax levied on imported goods in Singapore as well as the supply of any goods and services. The current GST rate in Singapore is 7%.
For cars, you will need to pay 7% of the car’s OMV and excise duty.
What is the maximum amount that I can borrow under a car loan?
It is important to be aware of the factors that contribute to the cost of your car as this will have an impact on the amount of loan you can take.
The loan amount that you are ultimately eligible for is dependent on the car’s OMV, not the total cost of purchasing your car.
The Monetary Authority of Singapore (MAS) has set maximum limits on the loan amounts and loan tenure. Based on their existing regulations, the maximum loan amount that you can take are as follows:
- For cars with OMV of up to S$20,000: 70% of car purchase price with repayment tenure of maximum 7 years
- For cars with OMV of more than S$20,000: 60% of car purchase price with repayment tenure of maximum 7 years
Do bear in mind that these are maximum limits set by MAS. The actual loan amount and repayment period granted to you ultimately depends on several factors including your income, age, and credit score.
What are the interest rates on car loans?
The interest rates on your car loans vary between banks and financial institutions. Most banks tend to offer an interest rate of 2.78%.
However, interest rates do fluctuate from time to time. Some banks and financial institutions also offer promotions from time to time. Hence it is best to always do your due research and enquire directly with the bank or financial institution for more updated rates.
Are there any other additional costs that I should be aware of?
When getting a quotation on your car loan from banks or financial institution, here are other additional costs that you need to take note of as well:
Processing / Administrative Fee
Most banks charge a minimum administrative fee of $200. However, some banks also waive the administrative fee if your loan amount meets a minimum value.
Early Settlement Fee
Most banks charge an early settlement fee should you decide to repay your loan earlier than the stipulated repayment period. The amount is usually at least 1% of your outstanding car loan.
Unpaid Interest Fee
Similar to the early settlement fee, you may incur an additional penalty on the unpaid interest if you repay your car loan early. Most banks charge a penalty of 20% on the remaining unpaid interest on your outstanding car loan.
Editor’s Note:
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