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.
Best Car Loans for Used Cars: DBS Car Loans
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. Read Our Full Review
|Duration (Years)||Flat Rate||EIR||Monthly Payment||Total Interest Cost|
Best Car Loans for New Cars in Singapore: OCBC New Car Loans
OCBC offers the most affordable car loans for new cars, charging just 2.28% p.a. on loans for new vehicles. Like other lenders, OCBC covers up to 70% of your car’s price 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 decide on the car.
The early settlement fee is 1% of the outstanding loan amount and 20% on interest rebate. Read Our Full Review
|Duration (Years)||Flat Rate||EIR||Monthly Payment||Total Interest Cost|
Best COE Renewal Loans: Motorist
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
How to Choose a Car Loan
Find the Cheapest Car Loans in Singapore
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 Singapore||Interest Rate||Tenure||Max Principal||Monthly Instalment||Total cost|
|DBS Used Car Loan||1.99%||1-7 Years||60%/70% of car price||S$1,283||S$6,965|
|DBS New Car Loan||2.28%||1-7 Years||60%/70% of car price||S$1,329||S$9,730|
|Hong Leong Finance Used Car Loan||2.78%||1-7 Years||60%/70% of car price||S$1,329||S$9,730|
|Hong Leong Finance New Car Loan||2.48%||1-7 Years||60%/70% of car price||S$1,312||S$8,680|
|Maybank New Car Loan||2.78%||1-5 Years||60%/70% of car Price||S$1,329||S$9,730|
|OCBC Used Car Financing||2.28%||1-7 Years||60%/70% of car price||S$1,329||S$9,730|
|OCBC New Car Loan||2.28%||1-7 Years||60%/70% of car price||S$1,329||S$9,730|
|Tokyo Century||2.78%||1-7 Years||60%/70% of car price||S$1,329||S$9,730|
|Sing Investments & Finance||2.78%||1-7 Years||60%/70% of car price||S$1,329||S$9,730|
|Singapura Finance||2.99%||1-7 Years||60% of car price||S$1,341||S$10,465|
|Standard Chartered||2.78%||1-7 Years||60%/70% of car price||N/A||N/A|
|UOB Used Car Loan||2.98%||1-7 Years||60%/70% of car price||S$1,341||S$10,430|
|UOB New Car Loan||2.68%||1-7 Years||60%/70% of car price||S$1,323||S$9,380|
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.
There are certain times when it might be beneficial to refinance your car loan. For example, if your credit score has improved, interest rates are low, your car is worth more than what you currently owe on it, or you want to change the loan terms and conditions, refinancing can help you spend less or save more on your loan.
However, if your car is 10 years old or more it might be difficult to refinance. Moreover, if you currently owe money on your car loan and are looking to refinance with a new lender, the new lender could charge you higher interest rates over a longer period of time to offset the risk of lending you money. Therefore, while it may be beneficial to refinance your car loan, it is important to consider the terms and conditions of the new loan you wish to acquire.
To find out the best car loans available in Singapore, we've analysed data of twenty-one different car loans on the market. Specifically, we've compared interest rates, additional fees, minimum amounts you can borrow, loan tenors, eligibility requirements and more to determine which bank loans are best to buy a car depending on your circumstance.
The following table below lists the different banks whose car loans we analyzed in our research.
Additionally, we compared in-house car loan financing with bank loans to help readers ultimately decide the most cost-effective loan for them. If you're still unsure about whether to purchase a new or used vehicle, it might be worth your time to familiarize yourself with the benefits of both prior to choosing a loan to help finance your purchase.