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Best Car Loans in Singapore (2024): New, Used, Renewed COE, EV

asian couples buying car using best car loans in singapore

Car loans in Singapore from money lenders, financial institutions and other banks offer fast financing to city-state residents who want to purchase a new or used car, but don’t quite have the upfront cash required.

Different types of car loan exist for COE cars and electric car owners, too – and it’s important to know which type of loan is the best car loan for you if you want the best deal.

Before you get a car loan, you’ll need to think carefully about loan duration, the minimum loan amount you need, and the maximum Loan to Value or “LTV” you can afford to borrow. You’ll then want to compare the market to find the right car loans to suit you.

How Much Can You Borrow Using Car Loans in Singapore?

Car loans in Singapore come in a few key variations, which can loosely be defined as:

  • New car loans – aimed at new car buyers
  • Used car loan – aimed at used car buyers
  • COE car loan – aimed at those renewing their COE cars
  • Electric car loan – aimed at most car owners who drive electric/green vehicles

Most banks in the city-state will let you borrow up to a maximum loan to value (or maximum LTV) of up to 70% of your car’s Open Market Value OMV. However, this may vary depending on the type of car you drive and the loan amount and loan tenure you require.

Best Car Loans in Singapore – A Comparison of Car Loan Interest Rates, Loan Amount and More

The best car loans currently on the Singaporean market are offered by Hong Leong Finance, OCBC, DBS, and Standard Chartered Bank. Let’s take a look at how some of these fantastic deals compare against one another.

The following tables are separated into the four different categories we previously defined:

Loans for New Cars Compared

  Minimum Loan Amount Max Loan Amount Interest Rate Loan Tenure Options Top Benefits

Hong Leong Finance New Car Loan

$10,00 0 Up to 70% LTV 2.78% p.a. fixed 1 to 7 years
  • Fixed interest rates
  • Commercial vehicle financing available

OCBC New Car Loan

$15,000 Up to 70% LTV 2.78% p.a. 1 to 7 years
  • Enjoy big savings with OCBC Eco Care Car Loan
  • Get your loan approved in 60 seconds

DBS New Car Loan

$10,000 Up to 60 – 70% LTV 2.78% p.a. 1 to 7 years
  • Hassle-free applications via SingPass

Used Car Loan Options Compared

Minimum Loan Amount Max Loan Amount Interest Rate Loan Tenure Options Top Benefits

DBS Used Car Loan

$10,000 Up to 60 – 70% LTV 2.78% p.a. 1 to 7 years
  • Fast applications

Hong Leong Finance’s Used Car Loan

$10,000 Up to 70% LTV 3.08% p.a. fixed 1 to 7 years
  • Fixed interest rates

Standard Chartered Bank Auto Financing Loan

$15,000 Up to 60 – 70% LTV 3.08% p.a. 12 to 84 months
  • Wide range of car dealerships with Standard Chartered Bank

COE Loan Rates Explained

COE cars are a little different. If you own an older vehicle and wish to renew your COE, you can do so for between five and seven years with a maximum repayment term of either five or seven years, respectively. Two popular deals on offer right now, include:

  Minimum Loan Amount Max Loan Amount Interest Rate Loan Tenure Options Top Benefits


$10,000 Up to 60% LTV 2.98% p.a. Up to 7 years
  • Competitive COE loan rates


$10,000 Up to 70% LTV 3.18% p.a. fixed Up to 7 years
  • Flexible repayment period

Electric Car Loans Compared

Minimum Loan Amount Max Loan Amount Interest Rate Loan Tenure Options Top Benefits

DBS Green Car Loan

$10,000 Up to 60% LTV 2.88% p.a. 1 to 7 years
  • Easy to apply online

Hong Leong Finance’s Vehicle Green Loan

$10,000 Up to 70% LTV 2.48% p.a. fixed 1 to 7 years
  • Up to 70% financing

OCBC Eco Care Car Loan

$15,000 Up to 70% LTV 2.28% 1 to 7 years
  • Free charging promotion available

What Car Loan Amount and Downpayment Should I Expect?

When taking out a car loan, you need to think carefully about the loan amount you need. This means looking at the OMV of the motor vehicle you intend to purchase and determining how much you can afford to pay in cash versus how much you’ll need to borrow as a car loan. The maximum LTV most lenders will let you borrow is:

  • 70% of the car’s purchase price if the vehicle’s valuation is more than $20,000
  • 60% of the vehicle’s purchase price if the car’s valuation is less than $20,000

After you and your bank have agreed on an appropriate LTV, the remaining 30-40% of the vehicle’s purchase price will need to be covered using a cash downpayment.

Three Tips on What to Consider Before Taking Out Car Loans in Singapore

Here are a few things you might want to think about before applying for a car loan in Singapore:

1. Determine Your Affordability

You should start out by using maximum LTV limits versus savings and monthly income to figure out how much you can realistically afford for your downpayment – and how much you’ll need to borrow as a car loan from a bank or car dealership.

2. Choose an Appropriate Loan Tenure

Repayment periods are hugely important. A shorter loan tenure will see you pay less overall interest over the course of your loan, but you’ll need to pay higher monthly car loan instalments for the privilege. Pick the right loan tenure to suit you.

3. Calculate Your Monthly Car Loan Instalments Beforehand

Many banks, money lenders and car dealers will allow you to use an online loan calculator to assist with your motor vehicle loan affordability. If not, you can use the formula “monthly instalment = [loan amount x interest rate x loan tenure + loan amount / loan tenure” to figure it out for yourself.

Frequently Asked Questions (FAQs) About Car Loans in Singapore?

Here are some popular FAQs about getting a car loan in the city-state:

1. What Car Loan Interest Rates Do Banks Charge in Singapore?

Most car owners can expect to pay between 2.4 – 2.7% if using bank loans as a car loan. Generally, used car loans will attract higher interest rates than new car loans, as banks consider older vehicles to constitute a higher risk.

That said, you might be able to secure a more attractive interest rate than average on a “green” electric vehicle, due to various incentives and promotions.

2. Are 3% Car Loan Interest Rates Competitive?

As most banks and financial institutions in Singapore advertise new car loan interest rates of around 2.4 – 2.7%, a 3% interest rate probably wouldn’t be considered a competitive interest rate unless this rate applies to a used car, as used vehicles are usually more expensive to get loans approved for.

3. Should I Borrow My Car Loan From a Bank or Car Dealerships

Ultimately, whether a car dealer loan or bank loans are best for you all boils down to the total cost of the car loan you are applying for and the loan duration or loan tenure you require.

Car dealerships will typically charge a higher interest rate, but the application process is usually more straightforward. You should also keep in mind that longer loan tenures will always see you pay more interest over the period of your loan even if you secure a lower interest rate.

4. Can I Still Get a Car Loan with Poor Credit?

Having poor credit doesn’t necessarily mean you won’t be able to get a car loan. Even if other banks are unwilling to grant car loans to you, a licensed moneylender can usually help. Licensed lenders in Singapore like 365 Credit offer all kinds of personal finance options, including car loans.

5. Is Refinancing a Car Loan a Good Idea?

Refinancing a car loan can help you access more competitive interest rates and therefore save money on your loan. That said, there are certain rules you’ll need to follow in order to do so and it’s important to ensure you refinance your car at the right Open Market Value OMV and avoid overstretching yourself with an unnecessary long loan tenure.

6. Car Loans in Singapore – Here’s What You Need to Know

From finding the right type of loan for your vehicle, to coming to terms with LTV, OMV and other borrowing jargon, there’s a lot to consider before applying for a car loan in Singapore. Here are the key things to keep in mind:

  • Banks, moneylenders, and car dealers offer different kinds of car loans to drivers purchasing new and used cars. COE and electric car owners will also need to consider different loan products.
  • Banks will usually let you borrow up to a maximum LTV of 60 – 70% of your car’s Open Market Value OMV. You’ll need to pay the remainder as a cash downpayment.
  • Opting for longer loan tenures can help you save money on interest rates in the short term, as you’ll get to enjoy lower monthly repayments – but your longer-term interest paid could wind up costing more.
  • Comparing the market to find the best interest rate, loan tenure, and monthly installment costs will help you find the most appropriate and cheapest car loans to suit you.

If you’re looking for a personal loan with quick approval, but you’re worried about a low credit score or lengthy bank application procedures, 365 Credit can help. We offer fast, trusted loans you can apply for online in minutes. Apply now and get your cash on the same day!

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