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.
OCBC's car refinancing loan is a unique offering that allows you to refinance 100% of your existing car loan at a lower rate. For applicants who have an existing car financing with other banks (for at least 6 months) at an interest rate of 2.40% a year or more, OCBC is offering a refinancing loan with just 2.08% in interest rate. This is a great deal that can save you a lot of money.
For instance, if you took out a car loan of S$70,000 for 5 years at 2.78%. After 1 year, you would have paid a total of S$15,946 to the bank, consisting of S$1,946 in interest and S$14,000 in principal repayment. If you stick with such a loan for the full 5 years, it would have cost you S$9730 in interest payment.From you second year and on, you decide to refinance the remaining S$56,000 with OCBC’s Refinancing Loan at 2.08%. This will automatically decrease your monthly instalment from S$1,329 to S$1,260. Not only that, for the remaining 4 years, the total cost in interest will only be S$4,458. This means that you will saved S$3,125 in interest that you otherwise would have paid to your original bank! Below is a table that illustrates this calculation in detail. We've created a car loan calculator so that you can calculate these metrics for yourself.
If you are buying a new car, we believe DBS's new car loan is the best option because it charges the lowest interest rate among lenders in Singapore. At an interest rate of just 2.28%, this loan covers up to 70% of your car’s price, and is available for tenures ranging from 1 year to 7 years. Assuming you borrow S$70,000 over 5 years to fund your purchase, this loan will cost you about S$7,980 in interest. This translates to equal monthly instalments of S$1,300 for the borrower. You can use our car loan calculator to see which option yields the best result for your needs. Additionally, DBS is currently offering a promotion of S$50 in CapitaVouchers to online applicants.
Consider this if you require a car loan to purchase a used car
DBS is also the cheapest option for those individuals that require financing in order to purchase a used car as it offers the same low interest rate (2.28%) for used car loans. While other banks may not seem significantly more expensive (typically 2.9% to 3%), they end up being hundreds of dollars more expensive in terms of total interest paid. Additionally, DBS offers the same maximum principals as other banks, with loans of up to 70% of the car's purchase price.
Displaying Promotional Rate (1.99%) Assuming loan of S$70,000
Cost Comparison of Car Loans in Singapore
Find the Cheapest Car Loans in Singapore
Below, we have featured a chart comparing cost of different car loans in Singapore. We have grouped them by new car, used car and refinancing loans.
Cost Comparison of Car Loans in Singapore
Car loans in Singapore typically charge flat interest rates, meaning interest payment is a constant amount each month over the life of a loan. For example, a 2% flat rate for S$10,000 of loan over 5 years will cost S$200 of interest every year. To determine the best car loan options in Singapore, we collected data on all of the car loan offerings that were available in the country. Below, we provide a table summary of the data we collected on car loans ordered by their interest levels and total costs. To calculate cost, we assume the loan is for S$70,000 and is taken out for 5 years.
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