Best Car Loans in Singapore 2021

Singapore is notorious for extremely high car prices, making car loans quite popular. Our analysts reviewed every car loan from more than 10 of Singapore's top lenders in order to help you find the cheapest loan for your new or used vehicle. Our calculator tool will help you compare different car loans based on the latest rates, expected monthly payments and the total interest cost.

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 Car Loans for Used Cars: DBS Car Loans

PROMO: Get 1.68% interest for green cars
Consider this if you require a car loan to purchase a used car
Promotions:
  • 1.68% interest for green cars

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 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 Car Loans for New Cars in Singapore: OCBC New Car Loans

Consider this if you need a car loan to purchase a new vehicle
Promotions:
  • No promotion currently offered

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 RateEIRMonthly PaymentTotal Interest Cost
12.28%4.18%S$5,966.33S$1,596.00
22.28%4.32%S$3,049.67S$3,192.00
32.28%4.35%S$2,077/44S$4,788.00
42.28%4.34%S$1,591.33S$6,384.00
52.28%4.33%S$1,299.67S$7,980.00
62.28%4.31%SS$1,105.22S$9,567.00
72.28%4.29%S$966.33S$11,172.00
Assuming loan of S$70,000

Best COE Renewal Loans: Motorist

Consider this if you require a COE renewal loan
Promotions:
  • No promotion currently offered

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

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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 Used Car Loan1.99%1-7 Years60%/70% of car priceS$1,283S$6,965
DBS New Car Loan2.78%1-7 Years60%/70% of car priceS$1,329S$9,730
Hitachi Capital New Car Loan2.78%1-5 Years60%/70% of car priceS$1,329S$9,730
Hong Leong Finance Used Car Loan2.78%1-7 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
Maybank New Car Loan2.78%1-5 Years60%/70% of car PriceS$1,329S$9,730
OCBC Used Car Financing2.28%1-7 Years60%/70% of car priceS$1,329S$9,730
OCBC New Car Loan2.28%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 Chartered2.78%1-7 Years60%/70% of car priceN/AN/A
UOB Used Car Loan2.98%1-7 Years60%/70% of car priceS$1,341S$10,430
UOB New Car Loan2.68%1-7 Years60%/70% of car priceS$1,323S$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.

Methodology

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.

Summary of Car Loan Lenders
DBSHong Leong FinanceMaybankOCBC
UOBHitachi CapitalTokyo CenturySingapura Finance
Sing Investments & FinanceStandard Chartered

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.

Stephen Lee

Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.