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Owning a car offers a multitude of benefits for someone living and working in Singapore but not a lot of people can afford it given the high costs of taxes. Opting for a loan can help you own the car of your dreams through easy and flexible repayment schemes. There are different types of loans out there designed for different purposes, knowing them all can help you make an informed and economical decision to bring you one step closer to owning the car of your dreams without burning a huge hole in your pocket.

Find out everything there is to know about getting a car loan in Singapore below.

Different Types of Loans

There are several types of car loans available in Singapore, depending on the condition and type of car you want to purchase. It’s important that you know the different financing options available out there so you can make the best decision for your money.

1. New Car Loan

This is probably one of the most common type of car loan out there. In this type of agreement, a borrower loans a certain amount from a bank or a financing institution to help them purchase a brand new car from a dealership.

Borrowers are allowed to loan up to 70% of the total selling price of the vehicle. This loaned amount is then made payable on a monthly basis for a prescribed period of time that’s no longer than seven years.

This type of loan can easily be acquired given the borrower has a good credit score and proof of financial capabilities to repay the amount borrowed.

2.Used Car Loan

This is another popular type of loan for those wanting to own a car without having to pay the steep costs of a brand new one. Car financing institutions and banks have a unique set of criteria to determine the eligibility of a borrower under this agreement. They also have strict guidelines when it comes to the age and condition of the vehicle to be purchased.

 

3.Car Loan Financing

This is a re-financing option for those who are already under an existing agreement with a financing institution or bank. The borrower can approach a financing institution or bank and ask them to re-finance their car under new terms with much lower rates.

The new bank or financing company will repay the entire loaned amount and provide you with a new agreement under their terms.

Benefits of Car Financing in Singapore

Signing up for a loan can make car ownership a more viable possibility for a working professional in Singapore. Given the longer tenure, the initial costs of a car can also be broken down into smaller and more manageable amount which can be paid on a monthly basis.

Below are some of the benefits of car financing in Singapore.

Offset Initial Costs

You can come to a financing institution and ask them to provide you with the initial funds you need to purchase a car from a dealership. A financing company can provide you with up to 70% of the total amount you need in order to buy a car, which can be repaid through a more flexible installment plan.

Longer Agreement Tenure

Car financing companies in Singapore offer flexible repayment tenure for borrowers, this translates to lower monthly installment fees that are made payable for up to seven years.

Lowest Interest Rates

Car financing companies are flexible financial institutions that offer some of the most competitive interest rates in the market today. With flexible payment tenure and some of the lowest interest rates out there, getting a loan from a car financing institution like Car Finance Singapore can ease the financial burden of car ownership.

Easy Repayment Methods

Car financing companies like Car Finance Singapore prioritizes your convenience. We offer several easy payment methods to suit your preference – from auto-debit to cheque payment and more.