Owning a car can be a dream for some. Here are some auto financing loans you can consider to help you make your dream a reality.
Every spending situation is unique. SingSaver assembles the ‘Best For‘ list, so you can decide what’s best for you.
Singapore is one of the most expensive places in the world to own a car. An entry level Japanese-make family sedan would already cost upwards of $100,000 – that’s about 30% of a three-room HDB flat!
Unless you have a secret five-figure stash of cash squirrelled away, you would have to apply for a car loan like most car owners. As with most loans, the important considerations are the interest rates, the maximum amount you can borrow and the loan tenure. With car loans, a difference of 0.5% interest rate can amount to several thousands of dollars in extra interest paid, so it’s worthwhile to do your research before committing to buying a new or used car.
In Singapore, you will also need to be familiar with terms like COE (Certificate of Entitlement), OMV (Open Market Value) and PARF (Preferential Additional Registration Fee), which all relate and contribute to the price tag of a car, be it new or used.
Here is a summary of the best car loans in Singapore, sorted according to potential buyers’ needs.
5 best auto financing loans in Singapore
|Best For||Auto Financing Loan||Benefits|
|Electric car buyers||OCBC Eco-Care Car Loan||– Get your loan approved in 60 seconds before visiting the showroom|
– Competitive interest rate of 1.68% p.a
|New or used green car buyers||DBS Green Car Loan||– Competitive interest rate of 1.68% p.a. |
– One tree will be planted for every new DBS Green Car Loan application
|Buyers who only need a small loan amount||UOB Car Loan||Minimum loan amount starts from S$10,000|
|Buyers who want options where they can get their new or used car from||Standard Chartered Auto Financing||Purchase the car of your choice from Standard Chartered’s wide network of dealers across the island|
|Used COE cars||UOB COE Car Loan||Tenure of up to 7 years for revalidated COEs|
Best for electric car buyers: OCBC Eco-Care Car Loan
OCBC Eco-Care Car Loan is a great option if you are looking to purchase an electric car. Not only are you able to get an in-principle approval within 60 seconds — so you’re aware how much you can potentially borrow from the bank to finance your vehicle — but you can also save and benefit from the competitive interest rate of 1.68% p.a.
To encourage more car owners to go green, OCBC Eco-Care Car Loan also lets customers enjoy six months of free charging of their electric car if they reside in an HDB flat. Those who reside in a condominium or private property will enjoy 12 months of free charging.
Additional perks are available if you purchase a new Jaguar I-PACE and take up the OCBC Eco-Care Car Loan.
Best for new or used green car buyers: DBS Green Car Loan
DBS Green Car Loan might just be what you need if you’re interested in buying a new or used green car in a bid to lower your carbon footprint and drive towards a greener, cleaner tomorrow.
Besides the attractive interest rate of 1.68% p.a. (similar to what OCBC Eco-Care Car Loan offers), you’ll be pleased to know that one tree will be planted for each new DBS Green Car Loan application the bank receives and approves. This welcome initiative is executed in collaboration with NParks’ OneMillionTrees movement.
Best for buyers who only need a small loan amount: UOB Car Loan
Need to borrow just a small sum of money to finance your car thanks to your healthy stash of savings? UOB Car Loan has a minimum loan amount of just S$10,000.
UOB Car Loan offers an interest rate of 2.68% p.a. and 2.78% p.a. for new and used cars (10 years and under) respectively. This applies across loan tenures ranging from one to seven years. The bank promises fast processing and approval with its wide network of dealers, too.
Best for buyers who want options where they can get their new or used car: Standard Chartered Auto Financing
Standard Chartered Auto Financing offers a wide distribution network of dealers scattered across Singapore, making it ultra convenient for potential car buyers to purchase the car of their dreams wherever they may be.
The application process and various payment channels available for customers to repay their monthly car loan instalments are also hassle-free and convenient to boot.
Standard Chartered Auto Financing offers an interest rate of 2.48% p.a. and 2.78% p.a. for new and used cars respectively. Customers are free to pick a loan tenure ranging from one to seven years that best suits them.
Best for used COE cars: UOB COE Car Loan
UOB COE Car Loan is ideal if you’re extending the COE of your car and your car happens to be aged between 10 and 11 years.
With tenures of up to seven years and a loan quantum of up to 70% of the purchase price or the bank’s valuation, whichever is lower, UOB COE Car Loan is a viable option for car owners who aren’t quite ready to bid farewell to their workhorse car just yet.
UOB COE Car Loan offers an interest rate of 3.25% p.a. across the different tenures available to customers.
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