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 refinancing 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 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: 6 Months Interest Free

Read Our Full Review

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
Assuming loan of S$70,000, total cost includes impact of promotion

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
Assuming loan of S$70,000

Best for Refinancing Your Car Loan: OCBC Car Loan Refinancing

Consider this if you want to refinance an existing car loan

Interest Rate 2.08%
Maximum Principal Up to 100% of car price
Maximum Term 7 years

OCBC's car refinancing loan is a unique offering that allows you to refinance your existing car loan at a lower rate. For applicants who have an existing car financing with other banks, OCBC offers a refinancing at just 2.08% p.a.

For instance, if you took out a car loan of S$70,000 for 5 years at 2.78%. If you stick with such a loan for the full 5 years, it would have cost you S$9,730 in interest payment. From your second year and on, if you refinance the remaining S$56,000 with OCBC’s Refinancing Loan at 2.08%. your monthly payment will decrease from S$1,329 to S$1,260. Not only that, you will save S$3,125 in total interest costs.

Read Our Full Review

Original Loan Year 1OCBC Refinancing from Year 2Original Loan for 5 Years
Interest Rate2.78%2.08%2.78%
Monthly InstalmentS$1,329S$1,030S$1,329
Total InterestS$1,946S$4,659S$9,730
Remaining PrincipalS$56,000S$0S$0
Refinancing SavingsS$3,125

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 Car Loan Refinancing2.08%1-7 Years100% of balanceS$1,288S$7,280
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
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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