Best auto loans in Singapore 2022

Cheapest car loans: comparison of car loan costs

Below we have presented a table comparing the cost of different car loans in Singapore. We’ve grouped them by New Car, Used Car, and COE Loans.

Car Loan Cost Comparison in Singapore

Best Auto Loans for Used Cars: DBS Auto Loans

PROMO: Get 1.68% Interest on Green Cars

DBS offers the cheapest car loans for used cars, due to their 1.99% interest rate and the current 6-month interest-free promotion. While car loans from other banks may not seem much more expensive (usually around 2.5-3%), these small differences add up to hundreds of dollars in total interest costs.

Finally, DBS offers the same maximum principal and term as other banks, with loans of up to 70% of the purchase price of the car and up to 7 years in terms. Read our full review

Duration (years) Package RIE Monthly payment Total interest cost
1 1.99% 3.67% $5,949 S$1,393
2 1.99% 3.78% S$3,033 $2,786
3 1.99% 3.82% $2,061 S$3,483
4 1.99% 3.82% $1,574 $4,876
5 1.99% 3.81% $1,283 $6,269
6 1.99% 3.81% $1,089 S$7,662
7 1.99% 3.79% $949 $9,055

Best car loans for new cars in Singapore: OCBC New Car Loans

OCBC - New Car Financing
OCBC - New Car Financing
Consider this if
you need a car loan to buy a new vehicle
  • Maximum capital
    • Up to 60% or 70% of the price of the car
Specials:
  • No promotion currently offered

OCBC offers the most affordable auto loans for new cars, charging just 2.28% per year on loans for new vehicles. Like other lenders, OCBC covers up to 70% of the price of your car and is available for 1-7 years. However, OCBC also offers quick one-minute approvals and the ability to get approved for the loan before or after you choose the car.

The prepayment charge is 1% of the outstanding loan amount and 20% on the interest subsidy. Read our full review

Duration (years) Package RIE Monthly payment Total interest cost
1 2.28% 4.18% $5,966.33 S$1,596.00
2 2.28% 4.32% $3,049.67 S$3,192.00
3 2.28% 4.35% $2,077/44 S$4,788.00
4 2.28% 4.34% S$1,591.33 S$6,384.00
5 2.28% 4.33% $1,299.67 S$7,980.00
6 2.28% 4.31% SS$1,105.22 S$9,567.00
7 2.28% 4.29% S$966.33 S$11,172.00

Best COE Renewal Loans: Motorist

Motorist COE Renewal Loan
Motorist COE Renewal Loan

Consider this if
you need a COE renewal loan

Specials:
  • No promotion currently offered

Renewing your vehicle’s COE (Certificate of Entitlement) can be expensive, and comparing COE loan rates can be difficult because banks don’t always publish their rates online. With Motorist, individuals can find affordable COE renewal loans based on their PQP and loan preferences.

The motorist also guarantees that he will find the lowest interest rate available – if you find a better rate, he will give you S$50. Plus, Motorist arranges a pre-COE inspection free of charge.

  • Free pre-COE inspection: to ensure that your car is suitable for COE renewal, the motorist will organize a free pre-COE inspection at its partner workshops
  • Lowest Loan Interest Rate Guarantee: The motorist guarantees the lowest COE loan interest rate in Singapore. If you find a lower loan interest rate elsewhere, they’ll give you $50!
  • 100% Complete PQP Financing: They work with several licensed banks and financial institutions to help you get a 100% complete COE loan in partnership with UOB, Maybank, Hong Leong Finance and more

How to choose a car loan

Find the cheapest auto loans in Singapore

To determine the best car loan options, we looked at the terms and conditions of each car loan available in Singapore. Below we provide a summary table of the data we collected. To calculate the cost, we assume the loan is S$70,000 and is for 5 years.

You can use our free auto loan calculator to see which option works best for your needs.

Car loans in Singapore Interest rate Mandate Maximum Principal Monthly payment Total cost
DBS Used Car Loan 1.99% 1-7 years old 60%/70% of the car price $1,283 $6,965
DBS new car loan 2.28% 1-7 years old 60%/70% of the car price $1,329 S$9,730
Hong Leong Finance Used Car Loan 2.78% 1-7 years old 60%/70% of the car price $1,329 S$9,730
Hong Leong Finance New car loan 2.48% 1-7 years old 60%/70% of the car price $1,312 $8,680
Maybank New Car Loan 2.78% 1-5 years 60%/70% of the car price $1,329 S$9,730
Used Car Financing OCBC 2.28% 1-7 years old 60%/70% of the car price $1,329 S$9,730
OCBC New Car Loan 2.28% 1-7 years old 60%/70% of the car price $1,329 S$9,730
Tokyo Century 2.78% 1-7 years old 60%/70% of the car price $1,329 S$9,730
Sing Investments & Finance 2.78% 1-7 years old 60%/70% of the car price $1,329 S$9,730
Finance Singapore 2.99% 1-7 years old 60% of the car price S$1,341 $10,465
Standard charter 2.78% 1-7 years old 60%/70% of the car price N / A N / A
UOB Used Car Loan 2.98% 1-7 years old 60%/70% of the car price S$1,341 $10,430
New car loan UOB 2.68% 1-7 years old 60%/70% of the car price $1,323 S$9,380

Frequently Asked Questions

The maximum amount you can borrow is 70% of the car loan value if the car costs less than S$20,000. For cars worth more than S$20,000, you can only borrow up to 60% of the total value.

There are a few things you should consider before deciding if a bank loan or a dealership is better for you. First, you need to consider the total cost of the loan. This means that you have to pay attention to the interest rate and the term of the loan. Car dealerships, on average, may charge around 3.70% to 4.50% interest for a car loan, while banks typically charge 1.99 to 3.00%.

It is also important to compare the term of the loan, as you will generally pay more with a “cheaper” loan over a longer period. In addition to interest rates, dealerships tend to charge higher administrative and processing fees than most banks. Additionally, many dealerships charge customers who want to prepay their loan. Although some banks do this too, it is worth comparing the various fees when choosing a lender.

You should also keep in mind the ease of obtaining either loan. For example, those with poor credit might find it easier to get a loan from a dealership than from a bank. Beware though, as they might charge higher interest rates given the situation. Also, some dealerships may not check their credit score and rely solely on your previous bank statements.

Yes. You can still get a car loan with bad credit. Although you may want to apply for a loan from a bank first, licensed lenders in Singapore can lend you the amount you need to buy a car. Also, since the Singapore credit bureau calculates your credit score from the last twelve months until now, you should start taking steps to understand why your credit score is holding you back and how to fix it before applying for a loan. ready.

There are certain times when it can be advantageous to refinance your car loan. For example, if your credit score has improved, interest rates are low, your car is worth more than you currently owe it, or you want to change the terms of the loan, refinancing can help you spend less or save more on your loan.

However, if your car is 10 years old or older, it may be difficult to refinance. Additionally, if you currently owe money on your car loan and are looking to refinance with a new lender, the new lender may charge you higher interest rates over a longer period to offset the risk of you lend money. Therefore, while it may be advantageous to refinance your car loan, it is important to consider the terms and conditions of the new loan you wish to acquire.

Methodology

To discover the best car loans available in Singapore, we analyzed data from twenty-one different car loans on the market. Specifically, we compared interest rates, additional fees, minimum amounts you can borrow, loan terms, eligibility requirements, and more to determine which bank loans are best for buying a car online. depending on your situation.

The table below lists the different banks whose car loans we analyzed in our research.

Additionally, we’ve compared auto loan in-house financing with bank loans to help readers choose the most cost-effective loan for them. If you’re still unsure whether to buy a new or used vehicle, it can be worth taking the time to familiarize yourself with the benefits of both before deciding on a loan to help finance your purchase.