Owning a car can be a dream for many. Here are some of the cheapest car loans to consider if you want to make your dream a reality while keeping your costs in check.
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% in 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.
- What’s the maximum amount you can get from a car loan?
- Best car loans for new & used cars in Singapore
- Is it better to get a car loan from the bank or a car dealership?
- Can you get a car loan if you have poor credit?
- How to choose a car loan
What’s the maximum amount you can get from a car loan?
car loan payment calculator
The maximum amount you can get from a car loan is either 70% or 60% of your car’s open market value (OMV):
- Motor vehicle with OMV ≤ S$20,000: maximum LTV is 70%
- Motor vehicle with OMV > S$20,000: maximum LTV is 60%
auto loan calculator
However, bear in mind that you may or may not receive the maximum Loan-to-Value (LTV). The bank or financial institution will take into account all your other debt obligations before deciding on the amount of car loan you qualify for. Also, your car loan has to be compliant with Total Debt Servicing Ratio rules.