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?
ValueChampion Rating 
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 |
| Promotion: |
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 (2.78% 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 Rate | EIR | Monthly Payment | Total Interest Cost |
|---|---|---|---|---|
| 1 | 2.48% | 5.38% | S$5,978 | S$1,736 |
| 2 | 2.48% | 5.11% | S$3,062 | S$3,472 |
| 3 | 2.48% | 5.00% | S$2,090 | S$5,208 |
| 4 | 2.48% | 4.92% | S$1,603 | S$6,944 |
| 5 | 2.48% | 4.86% | S$1,312 | S$8,680 |
| 6 | 2.48% | 4.82% | S$1,117 | S$10,416 |
| 7 | 2.48% | 4.77% | S$978 | S$12,152 |
Total Cost of Hong Leong Finance's Used Car Loans
| Duration (Years) | Flat Rate | EIR | Monthly Payment | Total Interest Cost |
|---|---|---|---|---|
| 1 | 2.78% | 6.03% | S$5,996 | S$1,952.00 |
| 2 | 2.78% | 5.72% | S$3,079 | S$3,896.00 |
| 3 | 2.78% | 5.59% | S$2,107 | S$5,852.00 |
| 4 | 2.78% | 5.50% | S$1,621 | S$7,808.00 |
| 5 | 2.78% | 5.43% | S$1,329 | S$9,740.00 |
| 6 | 2.78% | 5.37% | S$1,135 | S$11,720.00 |
| 7 | 2.78% | 5.32% | S$996 | S$13,664.00 |
Who Can Apply: Eligibility Criteria
- 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 Value | Maximum Loan |
|---|---|
| S$20,000 or less | 70% of the purchase price or valuation price, whichever is lower |
| Greater than S$20,000 | 60% 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)
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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.