Getting a car loan is crucial when buying an electric car, new or used car in Singapore. The purchase price of most new and used cars in the city-state tends to exceed the monthly income most city-state residents turn over, which is why car loans with attractive interest rates are universally popular.
The best car loans in Singapore typically come with an interest rate of around 2.5% with certain bank or financial institution options offering better interest rates than others. Most banks will allow you to borrow a maximum loan of up to 70% of your car’s Open Market Value (OMV). That said, it might be a better option to approach car dealerships for a loan directly if you’re dead set on shopping around for the cheapest car loans on the market.
But your car loan options don’t end there. Another alternative is to take out a car loan with a licensed moneylender. In addition, distressed borrowers who don’t need much money toward their vehicle’s purchase price can also turn to personal loans or a smaller used car loan instead. Let’s review the best car loan options currently only the market.
Best Car Loans For New Cars
1. Hong Leong Finance New Car Loan – Best for New Cars
Maximum Loan: 70% of car purchase price
Interest: 2.5%
Tenure: 1-7 years
About
Hong Leong Finance’s product range includes several different kinds of car loans, but their new car option is especially good for cash-strapped buyers looking for affordable monthly car loan instalments. Borrowers can secure a fixed interest rate right from the get-go and customize their loan in several beneficial ways.
Highlights
- 7-year tenure
- Fixed interest rate available
- Up to 70% financing
2. OCBC Bank New Car Loan – Best for Fast Approvals
Maximum Loan: 70% of car price
Interest: 2.5%
Tenure: 1-7 years
About
OCBC Bank offers super-fast loan approvals. In fact, OCBC’s latest marketing claims that you can get your car loan signed off in as little as 60 seconds before visiting your car dealership. The bank’s New Car Loan has repeatedly won “Lending Product of the Year” awards and past customers have been immensely impressed by OCBC’s straightforward loan application forms.
Highlights
- Ultra-fast applications
- No fees until car purchase is finalized
- Sound reputation
3. DBS Online Car Loan – Best for Young Professionals
Maximum Loan: 60-70% of car value depending on car’s Open Market Value
Interest: 2.5%
Tenure: 1-7 years
About
If you lead a busy lifestyle and don’t really have time to be comparing the best car loans on the market looking for the most affordable car loans for your unique use case, DBS will take the hassle out of the entire process. They offer one simple online car loan product that can be used to purchase both new and used cars. It comes with a competitive interest rate of 2.5% as well as tons of loan tenure options.
Highlights
- 24/7 online assistance
- Competitive interest rate
- Apply faster through Singpass
Best Car Loans For Used Cars
1. Hong Leong Finance’s Used Car Loan – Best for Used Cars
Maximum Loan: 70% of car purchase price
Interest: 2.8%
Tenure: 1-7 years
About
Hong Leong Finance’s super flexible Used Car Loan has a competitive interest rate and offers unrivalled flexibility to car owners who might not be able to 100% afford new cars. Used car buyers can customize multiple aspects of their loan to bring down their monthly car loan instalments. What’s more, Hong Leong Finance’s loan application process is consistently praised for its speed and simplicity.
Highlights
- Get up to 70% financing
- Enjoy up to a 7-year tenure
- Fast applications
2. UOB COE Car Loan – Best for COE Car Owners
Maximum Loan: Consult lender
Interest: 2.8%
Tenure: 1-7 years
About
UOB offers digital car financing, which means car owners can apply for their loan entirely online. Their UOB COE Car Loan is specially geared toward COE Car owners who would like to renew their COE Car to keep it running for a longer time. UOB COE loan rates are exceptionally good, too – at 2.8% with a loan tenure of up to 7 years.
Highlights
- Great for COE Car owners
- Paperless online applications
- Instant approval
3. Standard Chartered Bank Auto Financing Loan – Best for Flexible Repayment Plans
Maximum Loan: Check with lender
Interest: 3.0%
Tenure: 1-7 years
About
Standard Chartered Bank’s flexible repayment plans can help financially uncertain car buyers to better navigate their finances, though interest rates with SC are a little higher than what you might find elsewhere. There are also a few hidden fees you might have to contend with, too. Nevertheless, you can get a loan tenure of up to 7 years and also secure a fixed interest rate package early on if you need it.
Highlights
- Fixed rates available
- Various payment options
- Wide network of car dealerships
4. Tokyo Century Car Loan – Best for Fast Financing and Leasing
Maximum Loan: Check with lender
Interest: 2.8%
Tenure: 1-7 years
About
Tokyo Century acts as both a car financing provider and a car leasing company, meaning they are closely linked with a lot of car dealerships across Singapore. Car loans are available at a reasonably competitive 2.8% interest rate for up to 7 years, and you are free to purchase both new and used cars with their loans.
Highlights
- Fast and flexible financing
- Decent interest rates
- Car leasing also available
Best Car Loans For Electric Cars
1. DBS Green Car Loan – Best for Low Interest on Electric Cars
Maximum Loan: 60% of car price
Interest: 2.1%
Tenure: 1-7 years
About
The most attractive interest rates are often advertised on electric car-oriented green car loans. In fact, this latest offering from DBS can be secured for as low as 2.1% during promotional periods. You can borrow up to 60% of the total cost of your new vehicle and skip the need to provide minimum monthly income proof and other documents when you apply for your loan using Singpass.
Highlights
- Promotional interest rates
- Superfast applications through Singpass
- Borrow up to 60%
2. Hong Leong Finance’s Vehicle-Green Loan – Best for Free Charging Electric Vehicles
Maximum Loan: 70% of car price
Interest: 2.1%
Tenure: 1-7 years
About
Electric and green car buyers can find similarly great interest rates with Hong Leong Finance, who now offer a green-specific eco car loan. You can borrow up to 70% of the value of your plug-in or free charging car for anywhere up to 7 years, get loans starting from $10,000 and lock-in a flat rate from the outset if you desire.
Highlights
- Lock-in low interest rates
- Borrow for 1-7 years
- Get up to 70% financing
3. OCBC Eco Care Car Loan – Best for Tesla Drivers
Maximum Loan: Consult lender
Interest: 2.2%
Tenure: 1-7 years
About
Tesla car buyers and car owners will be delighted with OCBC’s flagship green car loan package. It offers a competitive interest rate of just 2.2%, 60-second loan approval and tons of free charging credits to condo and landed property residents – the latter of whom can even claim a free home EV charging station as an additional car loan perk.
Highlights
- Specifically designed for Tesla drivers
- Free charging credits
- 60 second loan approvals
Car Loan Interest Rates, Costs and Comparison Table
Now we’ve reviewed the best car loans on offer from top financial institutions in Singapore, let’s see how these car loan products compare against each other.
Our best car loans hail from Hong Leong Finance, OCBC, DBS, UOB, Standard Chartered and Tokyo Century, but each has different terms, advantages, and disadvantages to the next. Which is the best car loan for you? Check out this table to compare the key differences between our favorite most affordable car loans.
|
Bank / Product Name |
Motor Vehicle Type |
Minimum Loan Amount |
Car Loan Interest Rate (Approx.) |
Loan Tenure Options |
|
New cars |
$10,000 |
2.5% |
From one up to seven years |
|
|
New cars |
$15,000 |
2.5% |
From one up to seven years |
|
|
New and used cars |
$10,000 |
2.5% |
From one up to seven years |
|
|
Used cars |
$10,000 |
2.8% |
1 – 7 years |
|
|
Used cars |
$10,000 |
2.8% |
1 – 7 years |
|
|
Used cars |
Check with lender |
3.0% |
1 – 7 years |
|
|
Used cars |
Check with lender |
2.8% |
1 – 7 years |
|
|
Electric cars |
$10,000 |
2.1% |
1 – 7 years |
|
|
Electric cars |
$10,000 |
2.1% |
1 – 7 years |
|
|
Electric cars |
$15,000 |
2.2% |
1 – 7 years |
As you can see, there are multiple lenders offering a 1 to 7-year loan tenure on car loan products with a competitive interest rate. The average car loan interest rate when borrowing from a bank sits at around 2.5%, but most banks tend to offer lower interest rates on green car loans targeted specifically at eco-friendly electric car drivers.
Standard Chartered, Tokyo Century and UOB are currently advertising higher-than-average car loan interest rates, while the most competitive interest rate products are on offer with other banks like Hong Leong Finance and DBS. Ultimately, green car drivers will save money the most, but which car loan is the best fit for you will depend on your own unique circumstances.
However, if you need your car loan cash today, you might be better off approaching a licensed moneylender, as you’ll usually be able to get your loan approved more quickly with a trusted lender than with a traditional bank.
Find the Right Car Loans in Singapore for You Today
With the cost of getting your hands on your dream car in the city-state on the rise, getting a car loan or a personal loan to fund your automotive dreams is becoming ever more essential for Singaporeans. Whether you decide to get your car loan from a bank, car dealer or licensed moneylender, be sure to remember that:
- The majority of banks will be willing to lend you up to 70% of your vehicle’s total asking price, though this isn’t a set rule – some banks will only be able to grant you up to 60%, while other banks may charge hidden fees, so compare the market widely.
- Many lenders offer separate loan products for new, used, and electric cars and you might be able to save money on your overall car loan costs and interest rate by going green.
- You don’t necessarily have to get a car-specific car loan when purchasing a vehicle. It’s always good to shop around, so why not investigate other personal finance options, such as personal loans, too?
- Licensed moneylenders typically work with much faster loan approval processes than banks, so taking out a moneylender car loan or personal loan could be a better financing option if you need to make your car purchase quickly.
Among the most highly-rated licensed moneylenders in the country, 1 Fullerton Credit offers fast approval personal loans in Singapore. With us, you can get your personal loan application approved in a matter of minutes and get funding for your new or used car today. Apply now or request a free loan quote.
