Best Car Loans 2018

Singapore is notorious for extremely high car prices. Therefore, car loans for both new and used cars are quite popular. Our analysis of the best car loans in Singapore will help you compare rates and features in order to choose the option for your financing needs.

Loans

Best For Refinancing Your Car Loan: OCBC Car Refinancing Loan

OCBC - Car Refinancing Loan

Consider this if you want to refinance an existing car loan

Interest Rate 2.08%
Maximum Principal Up to 100% of car price
Maximum Term 7 years
Not Applicable N/A

OCBC's Car Refinancing Loan is a unique offering that allows you to refinance 100% of your existing car loan at a lower rate. For applicants who have an existing car financing with other banks (for at least 6 months) at an interest rate of 2.40% a year or more, OCBC is offering a Refinancing Loan with just 2.08% in interest rate. This is a great deal that can save you a lot of money.

For instance, let’s say you took out a car loan of S$70,000 for 5 years at 2.78%. After 1 year, you would have paid a total of S$15,946 to the bank, consisting of S$1,946 in interest and S$14,000 in principal repayment. If you stick with such a loan for the full 5 years, it would have cost you S$9730 in interest payment.From you second year and on, you decide to refinance the remaining S$56,000 with OCBC’s Refinancing Loan at 2.08%. This will automatically decrease your monthly instalment from S$1,329 to S$1,260. Not only that, for the remaining 4 years, the total cost in interest will only be S$4,458. This means that you just saved S$3,326 in interest that you otherwise would have paid to your original bank! Below is a table that illustrates this calculation in detail. We've created a car loan calculator so that you can calculate these metrics for yourself.

Original Loan 1st YearOCBC Refinancing Loan from 2nd YearOriginal Loan for 5 Years
PrincipalS$70,000S$56,000S$70,000
Interest Rate2.78%2.08%2.78%
Monthly InstalmentS$1,329S$1,030S$1,329
Total InterestS$1,946S$4,659S$9,730
Number of Years145
Remaining PrincipalS$56,000S$0S$0
Total Saving From RefinancingS$3,125

Best Car Loans For New Cars in Singapore

DBS Car Loan - New Car

Consider this if you require a car loan to purchase a new car

Interest Rate 1.99%
Maximum Principal Up to 70% of car price
Maximum Term 7 years
Not Applicable Company Cars

If you are buying a new car, we believe DBS's car loan is the best option with the cheapest interest rate. At an interest rate of just 1.99% this loan covers up to 70% of your car’s price, and is available for tenures ranging from 1 year to 7 years. Assuming you borrow S$70,000 over 5 years to fund your purchase, this loan will cost you about S$6,965 in interest. This translates to S$1,283 of equal monthly instalments for the borrower. You can use our car loan calculator to see which option yields the best result for your needs. Besides there are some other notable options that are also available at around 2.7-2.8%, which are about equivalent to DBS's non-promotional offer of 2.78%. If you are already a banking customer with one of these banks, you may choose to go with the same bank for your car loan to simplify your monthly bills.

New Car Loans in SingaporeInterest RateMonthly InstalmentTotal cost
DBS Car Loan1.99% (until 17 Nov 2017, normally 2.78%)S$1,282.75S$6,965
Hong Leong Finance - New Car2.78%S$1,329S$9,730
OCBC - New Car Financing2.78%S$1,329S$9,730
Standard Chartered - New Car2.7%S$1,324S$9,450

Best Car Loans For Used Cars

OCBC - Used Car Financing

Consider this if you require a car loan to purchase a used car

Interest Rate 2.98%
Maximum Principal Up to 70% of car price
Maximum Term 7 years
Not Applicable N/A

Buying a used car can be a great option if your budget is more limited. However, there are a lot of things you need to make sure before buying a used car. For example, you must do a thorough inspection to ensure the car is not seriously damaged. It’s also worth checking how many years are left in the car’s COE. At any rate, since used cars are worth less than new cars, and since used car buyers tend to be less affluent than new car buyers, banks typically charge a slightly higher interest rates. Given this, we think the OCBC, Hong Leong and Standard Chartered provide the best car loans for used car buyers. All of these banks charge about 3% in interest and lend up to 70% of the car’s purchase price. Assuming you borrow S$50,000 over 5 years to fund your purchase, these loans will cost you about S$7,450 in interest. This translates to S$958 of equal monthly instalments for the borrower. Try using our car loan calculator to estimate your monthly instalments today!

Used Car Loans in SingaporeInterest RateTenureMax PrincipalMonthly InstalmentTotal cost
Hong Leong Finance - Used Car2.98%1-7 Years70% of OMVS$958S$7,450
OCBC - Used Car Financing2.98%1-7 Years70% of OMVS$958S$7,450
Standard Chartered - Used Car3.00%1-7 Years70% of OMVS$958S$7,500

Cost Comparison of Car Loans in Singapore

Find the Cheapest Car Loans in Singapore

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Below, we have featured a chart comparing cost of different car loans in Singapore. We have grouped them by new car, used car and refinancing loans.

Comparing interest rates of car loans from all banks and major lenders in Singapore, categorized by loans for new cars and used cars
Cost Comparison of Car Loans in Singapore

Methodology

Car loans in Singapore typically charge flat interest rates, meaning interest payment is a constant amount each month over the life of a loan. For example, a 2% flat rate for S$10,000 of loan over 5 years will cost S$200 of interest every year. To determine the best car loan options in Singapore, we collected data on all of the car loan offerings that were available in the country. Below, we provide a table summary of the data we collected on car loans ordered by their interest levels and total costs. To calculate cost, we assume the loan is for S$50,000 and is taken out for 5 years.

Car Loans in SingaporeInterest RateTenureMax PrincipalMonthly InstalmentTotal cost
DBS Car Loan1.99%1-7 YearsUp to 70% of Car PriceS$1,282.75S$6,965
Standard Chartered2.70% (3% for used)1-7 Years70% of Car PriceS$1,324S$9,450
Hong Leong Finance2.78% (2.98% for used)1-7 Years70% of Car PriceS$1,329S$9,730
OCBC Car Financing2.78% (2.98% for used)1-7 Years70% of Car PriceS$1,329S$9,730
UOB HP Car Loan2.78% (2.98% for used)1-7 Years70% of Car PriceS$1,329S$9,730
Maybank Auto Loan3.25%1-5 Years60% of Car PriceS$1,356S$11,375
Century Tokyo Auto Loan3.28%1-5 Years70% of Car PriceS$1,358S$11,480
OCBC Car Refinancing2.08%1-7 Years100% of Outstanding BalanceS$1,030S$5,824

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