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

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

While Hong Leong Finance does not offer Singapore's cheapest car loans, it charges lower than average interest rates making it a great backup option.

Good for

  • Individuals seeking an affordable backup option to Singapore's cheapest car loans

Bad for

  • Individuals seeking the cheapest car loan possible
  • Borrowers seeking to refinance their existing car loan

Editor's Rating

4.0/5.0

Hong Leong Finance is a good backup option to Singapore's cheapest car loans, as the bank offers loans that charge lower than average interest rates. Therefore, if you are unable to obtain the cheapest possible car loans in Singapore, it is worth considering Hong Leong as an alternative.

Summary of Hong Leong Finance Car Loans
Competitive New & Used Car Loan Interest Rates: 2.48% & 2.78%
Loan Tenure: 1 to 7 years
Maximum Loan Amount: Up to 60% or 70% of vehicle price

Table of Contents

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

Hong Leong Finance does not offer the cheapest car loans in Singapore. However, it is still a great backup option because it's interest rates for new and used car loans are cheaper than most loans on the market, at 2.48% and 2.78%, respectively. Therefore, if you are not able to obtain a cheaper car loan, you may want to consider Hong Leong Finance as it will be a relatively inexpensive financing option compared to many other lenders in Singapore.

Total Cost of Hong Leong Finance's New & Used Car Loans

TenureMonthly Payment (New)Total Interest Cost (New)Monthly Payment (Old)Total Interest Cost (Old)
1S$5,978S$1,736S$5,996S$1,946
2S$3,061S$3,472S$3,892S$3,892
3S$2,089S$5,208S$2,107S$5,838
4S$1,603S$6,944S$1,621S$$7,784
5S$1,311S$8,680S$1,329S$9,730
6S$1,117S$10,416S$1,134S$11,676
7S$978S$12,152S$996S$13,622
Assuming S$70,000 loan

Who Can Apply: Eligibility Criteria

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

Interest Rate 2.48%
Maximum Principal Up to 60% or 70% of car price
Maximum Term 7 years

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. It is important to fully understand fees and other terms and conditions before applying from a loan from any 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)

Comments and Questions