UOB Car Loan Review: How Does it Compare to the Competition?

UOB Car Loan Review: How Does it Compare to the Competition?

UOB does not offer the least expensive car loans, but their flexible financing options make it an intriguing backup option.

Good for

  • Individuals seeking backup car loan options
  • Individuals seeking smaller upfront payments

Bad for

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

Editor's Rating

3.5/5.0

With interest rates of of 2.78% and 2.98%, UOB does not offer the cheapest car loans in Singapore. With that said, UOB could be a good backup source of car financing for individuals that are not approved for loans from other banks. Additionally, the bank is unique because it offers flexible car loan repayment schemes and Certificate of Entitlement (COE) loans for used cars.

Summary of UOB Car Loans
New & Used Car Loan Interest Rates: 2.78% & 2.98% p.a.
HP50 Car Loan: Defer up to 50% of monthly instalments until final month
Loan Tenure: 1 to 7 years
Promotion: S$50 petrol vouchers to borrowers with approved loans of at least S$30,000

Table of Contents

What Makes UOB's Car Loans Stand Out to Borrowers

UOB does not offer the cheapest car loans in Singapore, due to its higher than average interest rates. However, the bank can be a good source of financing for individuals that are unable to obtain less expensive loans.

Additionally, UOB's HP50 car loans give borrowers added financial flexibility. This is because these loans allow borrowers to pay as little as half of their regular monthly instalments for the first 59 months of a 5-year loan. In the final month of this loan, borrowers can choose to either fully repay their loan with one final instalment, trade their current vehicle for a new car or enter a sell and lease back scheme with their dealer. While UOB's HP50 loan can make your monthly payment much lower, it requires a large final payment to fully purchase the vehicle and is still charges more than other banks in terms of total interest cost over the duration of the loan.

Total Cost of UOB's New & Used Car Loans

Car TypeInterest RateMonthly PaymentFinal Month Redemption PaymentTotal Interest Cost
New Car2.78%S$1,329N/AS$9,730
New Car (HP 50)2.78%S$664S$40,529S$9,730
Used Car2.98%S$1,341N/AS$10,430
Used Car (HP 50)2.98%S$670S$40,885S$10,430
Assuming 5-year, S$70,000 loan

In addition to car loans, UOB offers COE loans for used cars, which can be very useful because a COE can be very expensive. For example, the average cost a COE is approximately S$50,000. UOB charges annual interest rates of 5.25% for these loans and provides financing for up to 70% of the COE cost as well as tenures of up to 7 years. Unfortunately for used car owners, UOB only offers COE loans to used cars that are more than 10 years old but not exceeding 11 years old, which significantly limits the eligibility of this financing.

Who Can Apply: Eligibility Criteria

Consider this if you are not able to obtain a cheaper car loan

In order to be eligible for UOB's car loans, applicants must be at least 21 years old. Singaporean Citizens, Permanent Residents and foreigners are allowed to apply for UOB's car loans; however, non-residents must apply with a local guarantor. UOB offers the largest possible loans allowed by MAS, with maximum principals of 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

UOB does not detail any fees associated with its car loans on its website. However, car lenders tend to charge fees for late payments or early loan completion. Fees can impact the total cost of your car loan, so it is important to fully understand the terms and conditions of before applying for financing.

How to Apply: Application Process

Individuals interested in applying for one of UOB's car loans must submit an application form. The bank offers an online application and claims that the application takes about 10 minutes for Singaporean Citizens and Permanent Residents. In addition to the application form, applicants are required to submit proof of identity, income and vehicle purchase.

Required Documents:

  • Photocopy of NRIC / Passport
  • Income Tax Notice of Assessment
  • Computerised Payslip
  • IR8A Form
  • Sales/Purchase Order from supplier (new car)
  • Copy of Registration/COE Card (used car)

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