Compare Car Loans: Find the Best Car Loan Rates Oct 2020

Cars are incredibly expensive in Singapore, which means you will most likely need to get some extra financial help if you're going to buy one. Our calculator tool will help you compare different car loans based on the latest rates, expected monthly payments and the total interest cost. Check out the FAQ so you can learn what to look for and what to expect.

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Car Loans FAQ

Learn more about car loans with our curated selection of commonly asked questions and answers.

THe amount of money you can borrow depends on your car's Open Market Valuation (OMV). If your OMV is less than or equal to S$20,000, then the maximum financing is 70% of the purchase price minus rebates or discounts. If the OMV is more than S$20,000, then the maximum financing is 60% of the purchase price minus any rebates or discounts.

Anyone at least 21 years of age with a good enough credit score and income can get a car loan in Singapore. Foreigners are also eligible, though they need an employment pass and a local guarantor. Depending on the bank, you also need to have a minimum income requirement of either S$24,000 or S$30,000.

Since you can't transfer your car loan, you will have to fully pay off the loan before you transfer ownership of your car to someone else.

The rule of 78 is utilised when want to pay off your loan early. It's a method used to calculate interest charges on a loan which ends up determining the total outstanding amount of your loan. When you apply the rule of 78, your payments will skew towards paying off the interest rather than the principal. Essentially, you will end up paying a larger financing and loan repayment cost to make up for the fact that you're ending the loan early. Here's an easy formula to show you how much you will end up paying on a S$30,000 car loan if you decide to repay your loan early and the bank applies the Rule of 78:

Original Loan FeaturesNew Early Repayment Features
  • Loan Tenure: 5 Years (60 months)
  • Loan Amount: S$30,000
  • Interest Rate: 2.50% p.a.
  • Total Interest Owed: S$3,750
  • Monthly Instalment: S$562.50
  • New Loan Tenure/Instalments Already Paid: 30 months
  • Total Amount Paid: S$16,875
  • Rule 78 Unpaid Interest Formula: Interest = balance loan period(balance loan period + 1)/original loan period (original loan period + 1) x total interest payable
  • Unpaid Interest (Applying Rule 78): S$952.87
  • Early Redemption Unpaid Interest Multiplier: 0.8
  • Total Loan Redemption Calculation: S$30,000 [total loan amount] + S$3,750 [total interest] - S$16,875 [amount already paid] - S$762.39 [0.8 x unpaid interest]
  • Total Amount Owed: S$16,113
Formula source: SGcarmart

THe amount of money you can borrow depends on your car's Open Market Valuation (OMV). If your OMV is less than or equal to S$20,000, then the maximum financing is 70% of the purchase price minus rebates or discounts. If the OMV is more than S$20,000, then the maximum financing is 60% of the purchase price minus any rebates or discounts.

Anyone at least 21 years of age with a good enough credit score and income can get a car loan in Singapore. Foreigners are also eligible, though they need an employment pass and a local guarantor. Depending on the bank, you also need to have a minimum income requirement of either S$24,000 or S$30,000.

Since you can't transfer your car loan, you will have to fully pay off the loan before you transfer ownership of your car to someone else.

The rule of 78 is utilised when want to pay off your loan early. It's a method used to calculate interest charges on a loan which ends up determining the total outstanding amount of your loan. When you apply the rule of 78, your payments will skew towards paying off the interest rather than the principal. Essentially, you will end up paying a larger financing and loan repayment cost to make up for the fact that you're ending the loan early. Here's an easy formula to show you how much you will end up paying on a S$30,000 car loan if you decide to repay your loan early and the bank applies the Rule of 78:

Original Loan FeaturesNew Early Repayment Features
  • Loan Tenure: 5 Years (60 months)
  • Loan Amount: S$30,000
  • Interest Rate: 2.50% p.a.
  • Total Interest Owed: S$3,750
  • Monthly Instalment: S$562.50
  • New Loan Tenure/Instalments Already Paid: 30 months
  • Total Amount Paid: S$16,875
  • Rule 78 Unpaid Interest Formula: Interest = balance loan period(balance loan period + 1)/original loan period (original loan period + 1) x total interest payable
  • Unpaid Interest (Applying Rule 78): S$952.87
  • Early Redemption Unpaid Interest Multiplier: 0.8
  • Total Loan Redemption Calculation: S$30,000 [total loan amount] + S$3,750 [total interest] - S$16,875 [amount already paid] - S$762.39 [0.8 x unpaid interest]
  • Total Amount Owed: S$16,113
Formula source: SGcarmart