Bugis Credit Pte Ltd is a licensed moneylender (License No. 25/2024) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

Best Car Loans in Singapore: A Comparison and Review (2024)

best car loans singapore

With so many different car loans in Singapore to choose from, it can often be difficult for drivers to determine which products might be the best fit for them. But with average car loan interest rates sitting at around 2-4% and other fees involved, too, it’s important for borrowers to secure the best possible deal.

Car loan products in the city-state vary depending on whether you’re purchasing a new or used car. If you’re buying an electric car, you might even need to look for a specific electric car loan. 

It’s also essential to compare the market to find the best car loan to suit you – which means finding the best interest rate, fees, and loan terms to ensure you’ll be paying affordable monthly car loan instalments.

Factors to Consider when Choosing a Car Loan in Singapore

There are several important things you’ll want to think about before applying for a car loan. You should start out by determining your affordability, then shop around to compare the following:

1. Car Loan Interest Rates and Fees

Most car owners should expect to pay between 2 and 4% in terms of car loan interest rates. Your interest rate will vary depending on the type of motor vehicle you drive, with electric car owners usually enjoying the lowest rates, and the highest interest being on COE loan rates required by older used car owners.

2. Loan Tenure and Monthly Car Loan Instalments

Ordinarily, most banks will let you take out a car loan for anywhere up to seven years. Your monthly income and the interest rates, processing fees and other charges advertised will need to be taken into consideration when determining what level of monthly payments you can afford.

3. Car Loan Amount and Eligibility Criteria

Most banks will let you borrow up to 60-70% of your car’s Open Market Value OMV, depending on whether you’ll be buying new or used cars. Generally, used cars are considered “higher risk” by lenders, meaning the 60% maximum loan to value limit will most likely apply.

4. Down Payment Requirements

You’ll need to make a down payment when buying a new car. The level of savings you’ve accumulated will determine the minimum loan amount you can realistically borrow if you want to keep your repayments low.

5. Financing Options – Bank Loans vs Car Dealers

There are several ways you can access car loans in Singapore – from regular bank loans to finance offered by your car dealership. Compare the market by asking your local car dealer for a quote, and shopping around to compare banks and other lenders online.

Comparison of Top Car Loans in Singapore

Let’s review some of the top car loans currently on the market, and how they compare against each other. The best car loans in Singapore hail from UOB, Hong Leong Finance, OCBC Bank and Maybank. First, we’ll review them at a glance. Then, we’ll take a closer look.

  Loan Amount  Interest Rates Fees Top Benefits
UOB Car Loans  Up to 70% of your car’s open market value  From 2.78% p.a. Contact provider here for info Fixed monthly instalments available over 7 years Competitive interest rates 
Hong Leong Finance Used Car Loan  Up to 70% of open market value OMV with Hong Leong Finance From 3.08% p.a. Use online loan calculator here for info Fix your interest rate in advance Available to anyone buying a used car of less than 10 years old 
OCBC Eco Care Car Loan  Up to 70% financing with OCBC bank From 1.95% p.a. $80 late payment charge 1% full settlement penalty Free charging credits for HDB and condo residents Exclusive packages for Tesla owners 
Maybank Car Loan  Up to 70% Dependent on minimum loan amount $80 late payment charge Early repayment fees of 20% interest plus 1% of loan amount Flat interest rate for fixed monthly instalments Borrow up to 70% open market value with a 7-year loan tenure 
UOB COE Car Loan  Up to 70% From 3.18% p.a. Use the UOB online loan calculator here for more info Super-fast online applications Specifically designed for COE car drivers 
UOB logo

1. UOB Car Loans – Best for New Car Buyers

United Overseas Bank (UOB) offers competitive car loans for new car buyers, with flexible terms and attractive interest rates.

What We Like About UOB Car Loan:

  • Interest rates from 2.78%
  • Fast online applications
  • Borrow up to 70% on a loan tenure of up to 7 years

What People are Saying:

  • “Very professional.” – Angie Tay
Hong Leong Finance logo

2. Hong Leong Finance Used Car Loan – Best for Used Cars

Hong Leong Finance caters to used car buyers with tailored loan products, providing flexibility and competitive interest rates.

What We Like About Hong Leong Finance Used Car Loan:

  • Get a loan tenure ranging up to 7 years
  • Flat interest rate of 3.08% p.a.
  • Flexible repayment periods with Hong Leong Finance

What People are Saying:

  • “Extraordinary”. – Yasmin R Gea
OCBC Bank logo

3. OCBC Eco Care Car Loan – Best for Electric Cars

OCBC offers a specialized loan product for electric vehicle owners, providing unique perks and fast loan approvals.

What We Like About OCBC Eco Care Car Loan:

  • Special perks for Tesla drivers
  • Free charging credits for certain borrowers
  • Loan approval in 60 seconds

What People are Saying:

  • “Awesome service!” – A O
Maybank logo

4. Maybank Car Loan – Best for Flat Interest Rates

Maybank offers car loans with flat interest rates, making it easy for borrowers to manage their repayments.

What We Like About Maybank Car Loan:

  • Flat interest rate available
  • GIRO payments
  • Up to 70% financing

What People are Saying:

  • “Good service”. – Mitch N
UOB logo

5. UOB COE Car Loan – Best for COE Car Buyers

United Overseas Bank also offers a dedicated car loan for COE car buyers, providing assistance with COE and competitive rates.

What We Like About UOB COE Car Loan:

  • Assistance with COE
  • Competitive interest rate
  • Borrow for a loan tenure of up to 7 years

What People are Saying:

  • “Great setup”. – JJ Low

Top Tips When Applying for Car Loans

Here are some important things to keep in mind when comparing and applying for the best car loans on the market:

Fully Understand Credit Scores and Eligibility Criteria

Banks will only ever grant car loans to customers who meet their eligibility criteria. Buyers with poor credit might need to work to rebuild their credit ratings beforehand, or consider personal loans from licensed moneylenders, which typically have more relaxed credit rating requirements than loans from banks.

Prepare Necessary Documents Early to Get Your Loan Approved

Having the right ID and documents to hand will be crucial to your application. Foreigners or residence permit holders might need to show more documents than others, too.

Negotiate Car Loan Interest Rates and Terms

The cheapest car loans will always be those with attractive interest rates and flexible repayment terms – so be sure to negotiate.

Avoid Common Mistakes when Applying for Car Loans

Bypass typical mistakes borrowers make by taking time to determine your pre-approval status, comparing the market carefully and negotiating directly with your preferred lenders.

Popular Car Loan Alternatives to Consider

Car loans offer huge potential to people who are buying a car and need some extra up-front cash – but they are far from the only option available. Banks and financial institutions offer lots of other kinds of financing that might be more suitable to some people, such as:

1. Leasing/Renting

Leasing a car instead of using a car loan to outright purchase it is another great option. It’s possible to get competitive rates with both leasing and regular car rentals.

2. Saving Up to Cover Your Car’s Purchase Price in Cash

Consider utilizing savings accounts, investments, and other means to build up enough cash to buy a new or used car outright. This will save you the hassle of having to make monthly payments and cover the interest rate of a car loan.

3. Financing via Personal Loans or Credit Cards

Personal loans, credit cards and other financial products all exist to help connect you with the products and services you need when short of cash. Just be sure to read and understand the T&Cs, and compare the market to secure the best interest rate deals.


To find the best car loans in Singapore, it’s essential to shop around and identify a deal that suits your unique borrowing needs. Keep in mind that:

  • Most banks allow borrowing up to 70% of the car’s purchase price, which may decrease to 60% for used cars.
  • Lenders offer specialized car loan products for new, used, and electric vehicles, with used cars generally facing higher interest rates.
  • Banks may have different products or perks depending on the car type and buyer’s situation, so always compare.

For financing your next car purchase, Bugis Credit can assist you in obtaining a personal loan with low interest quickly and conveniently online. Plus, receive a free, no-obligation loan quote to help you make an informed decision without any commitment.

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