Best Car Loans 2020

Singapore is notorious for extremely high car prices, making car loans quite popular. We've reviewed every car loan from Singapore's top lenders in order to help you find the cheapest loan for your new or used vehicle.

Cheapest Car Loans: Car Loan Cost Comparison

Below, we have featured a chart comparing the cost of different car loans in Singapore. We have grouped them by new car, used car and COE loans.

Comparing interest rates of car loans from all banks and major lenders in Singapore, categorized by loans for new cars and used cars
Cost Comparison of Car Loans in Singapore

Cheapest Car Loans: Car Loan Cost Comparison

Below, we have featured a chart comparing the cost of different car loans in Singapore. We have grouped them by new car, used car and COE loans.

Comparing interest rates of car loans from all banks and major lenders in Singapore, categorized by loans for new cars and used cars
Cost Comparison of Car Loans in Singapore

Best Loans for Used Cars

The cost of purchasing and operating a car is very high in Singapore. For this reason, used cars are popular among drivers on the island. Even these cars can be expensive, so individuals often look for financing options. The loans below represent the best financing choices according to our team's research.

Best Car Loans for Used Cars: DBS Car Loans

Consider this if you require a car loan to purchase a used car

Interest Rate 1.99%
Maximum Principal Up to 60% or 70% of car price
Maximum Term 7 years

DBS offers the cheapest car loans in for used cars, due to their market leading interest rate of 1.99% and current 6 months interest free promotion. While car loans from other banks may not seem significantly more expensive (typically about 2.5-3%), these small differences result in hundreds of dollars in terms of total interest costs. Finally, DBS offers the same maximum principal and duration as other banks, with loans of up to 70% of the car's purchase price and up to 7 years in tenure.

  • Current Promotion: 3 Months Interest Free

Read Our Full Review

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
11.99%3.67%S$5,949S$1,393
21.99%3.78%S$3,033S$2,786
31.99%3.82%S$2,061S$3,483
41.99%3.82%S$1,574S$4,876
51.99%3.81%S$1,283S$6,269
61.99%3.81%S$1,089S$7,662
71.99%3.79%S$949S$9,055
Assuming loan of S$70,000, total cost includes impact of promotion

Best COE Renewal Loans: Motorist

Consider this if you require a COE renewal loan

Renewing your vehicle's COE (Certificate of Entitlement) can be costly, and comparing COE loan rates can be difficult as bank's don't always publish their rates online. With Motorist, individuals can find affordable COE renewal loans based on their PQP and loan preferences. Motorist also guarantees that they will find the lowest interest rate available—if you find a better rate they will give you S$50. Not only that, Motorist arranges a pre-COE inspection for free.

  • Complimentary Pre-COE Inspection: To ensure your car is suitable for COE renewal, the Motorist will arrange for a complimentary Pre-COE inspection at their partnered 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 will give you $50!
  • Full 100% PQP Financing: They work with several approved banks and financial institutions to help you get a full 100% COE loan
  • Partnered with UOB, Maybank, Hong Leong Finance & more

Best Car Loans for New Cars in Singapore: Hong Leong Finance Car Loans

Consider this if you need a car loan to purchase a new vehicle

Interest Rate 2.48%
Maximum Principal Up to 60% or 70% of car price
Maximum Term 7 years

Hong Leong Finance offers the most affordable car loans for new cars. The lender charges just 2.48% p.a. on loans for new vehicles, which is the best rate available in Singapore. The finance company's loans cover up to 70% of your car’s price and are available for tenures ranging from 1 year to 7 years.

Read Our Full Review

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
12.48%5.38%S$5,978S$1,736
22.48%5.11%S$3,061S$3,472
32.48%5.00%S$2,089S$5,208
42.48%4.92%S$1,603S$6,944
52.48%4.86%S$1,311S$8,680
62.48%4.82%S$1,117S$10,416
72.48%4.77%S$978S$12,152
Assuming loan of S$70,000

How to Choose a Car Loan

Find the Cheapest Car Loans in Singapore

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To determine the best car loan options, we examined the terms and conditions of every car loan available in Singapore. Below, we provide a table summary of the data we collected. To calculate cost, we assume the loan is for S$70,000 and is taken out for 5 years. You can use our free car loan calculator to see which option yields the best result for your needs.

Car Loans in SingaporeInterest RateTenureMax PrincipalMonthly InstalmentTotal cost
DBS New Car Loan2.78%1-7 Years60%/70% of car priceS$1,329S$9,730
DBS Used Car Loan1.99%1-7 Years60%/70% of car priceS$1,283S$6,965
Hitachi Capital New Car Loan2.78%1-5 Years60%/70% of car priceS$1,329S$9,730
Hong Leong Finance New Car Loan2.48%1-7 Years60%/70% of car priceS$1,311S$8,680
Hong Leong Finance Used Car Loan2.78%1-7 Years60%/70% of car priceS$1,329S$9,730
Maybank New Car Loan2.78%1-5 Years60%/70% of car PriceS$1,329S$9,730
OCBC Used Car Financing2.98%1-7 Years60%/70% of car priceS$1,341S$10,430
OCBC New Car Loan2.78%1-7 Years60%/70% of car priceS$1,329S$9,730
Tokyo Century2.78%1-7 Years60%/70% of car priceS$1,329S$9,730
Sing Investments & Finance2.78%1-7 Years60%/70% of car priceS$1,329S$9,730
Singapura Finance2.99%1-7 Years60% of car priceS$1,341S$10,465
Standard CharteredUnknown1-7 Years60%/70% of car priceN/AN/A
UOB New Car Loan2.68%1-7 Years60%/70% of car priceS$1,323S$9,380
UOB Used Car Loan2.78% 2.98%1-7 Years60%/70% of car priceS$1,341S$10,430

Frequently Asked Questions

The maximum amount you can borrow is up to 70% of the car loan's 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 prior to deciding if a bank or dealership loan is better for you. First, you should consider the total cost of the loan. This means you should pay attention to the interest rate and loan duration. Car dealerships, on average, can charge around 3.70%-4.50% in interest for a car loan, while banks typically charge 1.99-3.00%. The duration of the loan is important to compare as well, as you will generally pay more with a "cheaper" loan over a longer period of time.

In addition to interest rates, dealerships tend to charge higher administrative and processing fees than most banks. Moreover, many dealerships charge customers who want to repay their loan early. While some banks do as well, it is worth comparing the miscellaneous fees when choosing a lender.

You should also keep in mind the ease of obtaining either loan. For example, those with poor credit might have an easier time accessing a loan from a dealership rather than a bank. Be wary, however, since they might charge higher interest rates given the situation. Moreover, some dealerships might not check credit score, and instead rely exclusively on your previous bank statements.

Yes. You can still get a car loan with poor credit. While you may first wish to apply for a loan from a bank, licensed money lenders in Singapore can loan you the amount you need to purchase a car.

Furthermore, since Singapore's Credit Bureau calculates your credit score from the previous twelve months until now, you should begin taking steps to Why Your Credit Score Is Holding You Back & How to Fix It prior to applying for any loan.

William Hofmann

William is a Product Manager at ValueChampion Singapore, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.

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