DBS charges the lowest interest rates for car loans for used cars (1.99%), making it the most affordable option for Singaporeans seeking to finance their purchase of a pre-owned vehicle. This rate is much cheaper than other car loans available in Singapore, and can save borrowers of hundreds of dollars over the course of a loan compared to other financing options. With that said, the bank's new car loan rates are less competitive, at 2.78% p.a.
|Summary of DBS Car Loans|
|Cheapest Used Car Loan Rate: 1.99% for online applicants|
|Maximum Loan Amount: Up to 60% or 70% of vehicle price|
|Loan Tenure: 1 to 7 Years|
Table of Contents
What Makes DBS's Car Loans Stand Out to Borrowers
DBS charges an interest rate of 1.99% for used car loans. This is the lowest rate offered in Singapore, making it a great choice for many car owners. With that said, DBS is not the best choice for new car financing, as its loans for these vehicles charge a higher interest rate (2.78%) For more details about these rates and the cost of borrowing from DBS, click the toggles below.
|Duration (Years)||Flat Rate||Monthly Payment||Total Interest Cost|
Aside from its low interest rates, the bank offers very similar terms to other lenders due to MAS regulations on car lending. For example, DBS and others offer maximum loan amounts of 60% or 70% of the car price, depending on the car's value, and a maximum loan tenure of 7 years. Please note that DBS does not offer car loans for the purchase of used cars that are more than 10 years old, and it charges 2.78% for loans for used cars that are more than 9 years old. With that said, DBS's used car loans are by far the cheapest in Singapore for most applicants.
Who Can Apply: Eligibility Criteria
Applicants must be at least 21 years old in order to be eligible for DBS's car loans. Additionally, The bank requires that Singaporean Citizens and Permanent Residents have monthly incomes of at least S$2,000, while foreigners residing in Singapore must earn at least S$4,000. DBS offers loans as small as S$10,000 and as large as 60% or 70% depending on the vehicle's price.
Maximum Loan Principal
|Vehicle's Open Market Value||Maximum Loan|
|S$20,000 or less||70% of the purchase price or valuation price, whichever is lower|
|Greater than S$20,000||60% of the purchase price or valuation price, whichever is lower|
Other Charges and Fees
DBS does not list any fees associated with its car loan products online. However, other car lenders in Singapore typically charge fees for late payments and for completely repaying a loan before the end of its tenure. It is important to understand the fees of each car loan before applying, as these fees can impact the total cost of owning your car.
How to Apply: Application Process
Individuals interested in DBS's car loans must apply online in order to be eligible for DBS's lowest interest rates. Applicants are required to provide documents proving their employment and income, as well as documents that detail their other financial commitments. Finally, applicants must submit their Vehicle Sales Agreement, if applicable.
Examples of Proof of Income Documents:
- Computerised Payslip
- CPF Contribution History
- IRAS Notice of Assessment