DBS Car Loan Review: Singapore's Least Expensive Car Loan?

DBS Car Loan Review: Singapore's Least Expensive Car Loan?

DBS offers the cheapest loans for used cars in Singapore.

Good for

  • Individuals seeking a loan in order to purchase a used vehicle

Bad for

  • Individuals that are unable to apply for a loan online
  • Individuals seeking financing to purchase a used car that more than 9 years old

Editor's Rating

4.5/5.0

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. To make their pre-owned car loans even more competitive, DBS is currently offering a promotion that gives borrowers a rebate for 6 months worth of interest costs. This promotion can save most borrowers 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
Current Promotion: 6 Months Interest Free for Used Car Purchase

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. Additionally, DBS is offering a 6 month interest rebate for those purchasing a pre-owned vehicles. In order to be eligible, applicants must apply for a a loan of at least S$10,000 and a tenure of at least 3 years.

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 promotion

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 toggle below.

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
12.78%5.56%S$5,996S$1,946
22.78%5.56%S$3,079S$3,892
32.78%5.56%S$2,107S$5,838
42.78%5.56%S$1,621S$7,784
52.78%5.56%S$1,329S$9,730
62.78%5.56%S$1,134S$11,676
72.78%5.56%S$996S$13,622
Assuming loan of S$70,000

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

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

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 ValueMaximum Loan
S$20,000 or less70% of the purchase price or valuation price, whichever is lower
Greater than S$20,00060% 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
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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