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Hong Leong Finance Car Loan Review: How Competitive Are the Bank's Rates?

Hong Leong Finance offers the cheapest car loans for new cars.

Hong Leong Finance Car Loan Review: How Competitive Are the Bank's Rates?

Hong Leong Finance offers the cheapest car loans for new cars.

4.5/5.0

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Pros

  • Great for new vehicle purchases

Cons

  • Not the best for refinancing an existing car loan

Hong Leong Finance provides one of Singapore's cheapest car loans for new vehicles. The lender's 2.48% interest rate for new car loans is one of the lowest available. Therefore, if you seek financing to purchase a new vehicle, Hong Leong could be a great option for you.

Summary of Hong Leong Finance Car Loans
Affordable New Car Loan Interest Rates: 2.48% p.a.
Loan Tenure: 1 to 7 years
Maximum Loan Amount: Up to 60% or 70% of vehicle price
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Table of Contents

What Makes Hong Leong Finance's Car Loans Stand Out to Borrowers

Hong Leong Finance offers one of the cheapest car loans for new cars in Singapore, with an interest rate of 2.48% p.a. Therefore, Hong Leong Finance will be a relatively inexpensive financing option compared to many other lenders in Singapore. With that said, HLF's used car loan rates (2.68% p.a.) are less competitive, and should be viewed as a backup to other, more affordable options.

Total Cost of Hong Leong Finance's New Car Loans

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
12.48%5.38%S$5,978S$1,736
22.48%5.11%S$3,061S$3,472
32.48%5.00%S$2,089S$5,208
42.48%4.92%S$1,603S$6,944
52.48%4.86%S$1,311S$8,680
62.48%4.82%S$1,117S$10,416
72.48%4.77%S$978S$12,152
Assuming loan of S$70,000

Total Cost of Hong Leong Finance's Used Car Loans

Duration (Years)Flat RateEIRMonthly PaymentTotal Interest Cost
12.78%6.03%S$856.50S$1,946.00
22.78%5.72%S$879.67S$3,892.00
32.78%5.59%S$902.83S$5,838.00
42.78%5.50%S$926.00S$7,784.00
52.78%5.43%S$949.17S$9,730.00
62.78%5.37%S$972.33S$11,676.00
72.78%5.32%S$995.50S$13,622.00
Assuming loan of S$70,000

Who Can Apply: Eligibility Criteria

Consider this if you are interested in a great backup option to Singapore's least expensive car loans

Singaporeans, Singapore PRs and foreigners of at least 21 years old are eligible for car loans from Hong Leong. The bank offers used car loans for the purchase of vehicles that are 1 to 10 years old. Additionally, it offers the maximum car loan principals allowed by MAS at up to 60% or 70% of the vehicle's value.

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

Hong Leong Finance does not detail their fees for their car loan products. However, other banks charge fees for late payments and repaying your loan in full before the end of the loan tenure. You should speak with a representative and read the contract to fully understand all the costs you could incur before applying for a loan from the bank, as fees can significantly impact your total cost of borrowing.

How to Apply: Application Process

Individuals that are interested in applying for one of Hong Leong Finance's car loans can apply by calling, visiting a branch or requesting more information online. Typically, car lenders require that applicants submit an application form as well as documents that prove the applicant's identity, income, employment and vehicle purchase.

Examples of Required Documents:

  • Photocopy of NRIC/Passport
  • Computerised payslip
  • CPF Statement of Account
  • Latest Income Tax Notice of Assessment
  • Transfer of Vehicle Ownership (if applicable)
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.