Interest rates, loan tenure, and early repayment fees are all crucial factors to consider when shopping around for a car loan.
For instance, while a regular car loan is suitable for purchasing new and used cars, borrowers purchasing a used car may face a higher interest rate. Additionally, electric vehicle buyers or those renewing their COE on a COE car may require a specialized type of car loan.
In this article, we’ll guide you through everything you need to know about getting a car loan in Singapore, so you can make an informed decision and find the best car loan to meet your needs.
What is the Maximum Car Loan Amount in Singapore?
If you’re borrowing from a bank or financial institution, there are pre-set maximum and minimum loan amount limitations in Singapore. The maximum loan amount you can borrow via car loans provided by a bank is:
- 70% of the car’s Open Market Value (OMV) if the vehicle is worth $20,000 or more.
- 60% of the car’s Open Market Value if the vehicle is worth less than $20,000.
If you need to borrow any more than this, you might want to look into alternative financing options, such as personal loans offered by other financial institutions or licensed moneylenders.
Best Car Loans in Singapore 2023
| Car Loan Provider | Interest Rate for New Cars | Interest Rate for Used Cars | Interest Rate for Electric Car | Interest Rate for COE Car |
| DBS | 2.78% | 2.78% | 2.48% (Green Car Loan) | N/A |
| Hong Leong Finance | 2.78% (flat) | 3.08% (flat) | 2.48% (Vehicle Green Loan) | N/A |
| Maybank | 2.99% | N/A | 2.99% (Electric & Hybrid Vehicles Financing) | N/A |
| OCBC Bank | 2.78% | 3.08% | 2.48% (OCBC Eco Care Car Loan) | 2.98% |
| Standard Chartered Bank | Get a quote here | Get a quote here | N/A | N/A |
| UOB Car Loan | 2.78% | 2.78% | Attractive interest rates (Go Green Car Loan) | 3.18% (UOB COE Car Loan) |
The best car loans currently available in the city-state are offered by DBS, Hong Leong Finance, Maybank, OCBC Bank, Standard Chartered Bank, and UOB Car Loan. Let’s review what each has to offer to car buyers across Singapore in terms of typical interest rates.
Insights: Which is the “best” cat loan?
Determining the “best” car loan provider depends on your specific needs, preferences, and financial situation. However, based on the interest rates, DBS and UOB Car Loan offer competitive rates for new and used cars, as well as electric vehicles.
DBS’s Green Car Loan offers the lowest interest rate for electric cars, making it an attractive option for those specifically seeking electric vehicle financing. Meanwhile, for COE, it’s best to request a quote to compare your options.
Best New Car Loan Products
Sometimes, new and used cars can be financed using the same car loans, though this isn’t always the case here in Singapore. Let’s take a closer look at some of the best car loans currently on offer for customers looking specifically for a new car loan –
| Interest Rate | Loan Tenure | Loan Amount | Monthly Income Requirement | |
| Hong Leong Finance New Car Loan | 2.78% (flat) | Up to 7 years | Up to 70% financing | Consult lender for minimum monthly income requirement here |
| OCBC Bank New Car Loan | 2.78% | Up to 7 years | Up to 70% of the purchase price or car valuation (whichever is lower) | Consult lender for minimum monthly income requirement here |
| Maybank Car Loan | 2.99% | Up to 7 years | Up to 70% of the purchase price or car valuation (whichever is lower) | $1,500 for Singapore Citizens, Permanent Residents and Foreigners |
| DBS Online Car Loan | 2.78% | Up to 7 years | 60 – 70% depending on Open Market Value | Consult lender here |
| UOB Car Loan | 2.78% | Up to 7 years | Up to 70% | Consult lender here |
Best Car Loans for Used Cars
Whether you’re buying a new or used car may affect what kind of loan you are eligible for. Here are some of the best car loan products aimed specifically at used car buyers: –
| Interest Rate | Loan Tenure | Loan Amount | Monthly Income Requirement | |
| DBS Online Car Loan | 2.78% | Up to 7 years | 60-70% depending on Open Market Value | Consult lender here |
| Hong Leong Finance Used Car Loan | 3.08% (flat) | Up to 7 years | Up to 70% financing | Consult lender here |
| Standard Chartered Bank Auto Financing | Consult lender here | Up to 7 years | Up to 70% financing | Consult lender here |
| OCBC Bank Car Loan | 3.08% | Up to 7 years | Up to 70% financing | Consult lender here |
Best Electric Car Loan Products
If you’re purchasing an electric or hybrid vehicle, you might need to apply for a specific electric car or “green car” loan to get your loan approved. The good news is that these products will usually come with a super competitive interest rate. Here are some of the best EV car loan products available right now –
| Interest Rate | Loan Tenure | Loan Amount | Monthly Income Requirement | |
| OCBC Eco Care Car Loan | 2.48% | Up to 7 years | From $10,000 minimum loan amount | Consult lender here |
| Hong Leong Finance Vehicle Green Loan | 2.48% | Up to 7 years | From $10,000 up to a maximum of 60% financing | Consult lender here |
| DBS Green Car Loan | 2.48% | Up to 7 years | From $10,000 up to a maximum of 60% financing | Consult lender here |
| Maybank Electric & Hybrid Vehicles Financing | 2.99% | Consult lender here | Consult lender here | $1,500 minimum income per month required |
| UOB Go Green Car Loan | Attractive interest rates | Up to 7 years | Up to 70% financing | Consult lender here |
Best Car Loans for COE Car Renewal
If you own used cars that are over a certain age, you might need to renew your COE for either a five or 10-year period if you wish to continue using them. COE renewal car loans are a little rarer than other types of car loan products. The best ones currently on the market, are –
| Interest Rate | Loan Tenure | Loan Amount | Monthly Income Requirement | |
| OCBC COE Car Loan | 2.98% | Up to 7 years | Up to 70% financing | Consult lender here |
| UOB COE Car Loan | 3.18% | Up to 7 years | Up to 70% financing | Consult lender here |
Frequently Asked Questions (FAQs) About Car Loans in Singapore
1. Should You Get Bank Loans or Car Dealers’ Loans to Finance Your Car?
It’s important to shop around for the best car loan deal to suit you. Car dealerships have a reputation for offering higher interest rates than other financial institutions, but you’ll benefit from greater convenience if borrowing from the same dealer you’re purchasing the vehicle from.
Another option might be to consult with licensed moneylenders like Raffles Credit for great rates on personal loans that will cover the purchase price of your vehicle. With us, you can get your loan approved super-fast if you need quick cash.
2. Can You Get a Car Loan if You Have Poor Credit?
If you need a car loan but are worried about your poor credit rating, don’t fear. While a general bank or financial institution is unlikely to approve a car loan for a borrower with a low credit score, licensed moneylenders in Singapore like Raffles Credit offer much looser eligibility restrictions than banks on all kinds of loan products – meaning you could still get a licensed moneylender loan today.
3. What are the Latest COE Renewal Rates?
To renew your COE in Singapore, you’ll need to pay 50% of your vehicle’s PQP, and the cost could vary depending on the category your vehicle falls under.
Some car loans aimed at COE customers will offer you a free COE loan calculator and various other ways of calculating the latest COE rates and costs quickly and easily online via their websites.
Conclusion
From figuring out which type of car loan is the best fit for someone in your unique position to landing a competitive interest rate on a deal that offers the right loan tenure and loan amount for you, there’s a lot to think about when shopping around for a car loan in Singapore. Remember, that:
Key Takeaways:
- If borrowing from a bank, the maximum loan amount you can borrow will range from 60 – 70% of the car’s Open Market Value, depending on whether it is worth less or more than $20,000.
- The most attractive interest rates are usually offered on electric car models, followed by new cars. This is because used cars and COE vehicles are likely to be deemed “higher risk” by your bank or financial institution.
- DBS and UOB Car Loans provide attractive rates for new, used, and electric vehicles, making them competitive choices for car financing.
- The DBS Green Car Loan boasts the lowest interest rate for electric cars, positioning it as an appealing option for those particularly interested in financing electric vehicles.
- For COE, it’s advisable to obtain a quote to compare the available options and make an informed decision.
Raffles Credit brings you all the latest news regarding car loans and other financial matters. If you need fast financing for your next car, we can help you get personal loan quick approval.
