The Ultimate Guide to the best Car Loans in Singapore (2023)

Without question, having your own transportation makes your everyday commute more comfortable, safe, and convenient. This is exactly why many Singaporeans dream of having a car.

Since most individuals need financing to purchase their dream car, it would be extremely helpful to find the best car loans in Singapore. After all, auto financing is the most practical way to acquire your own vehicle without exhausting your savings.

When you qualify for an auto loan in Singapore, you can buy a car and enjoy flexible payment options and low interest rates. If it’s your first time applying for a car loan, don’t worry. It’s easier than you think.

Ready to find out the best car loans in Singapore? Keep on reading.

Here at OMY Singapore, you will discover the following:

What Is a Car Loan?

An auto loan in Singapore refers to car financing through a lender. It simply means you’re borrowing money to pay for your car.

In return for the money you borrow, you need to pay back the money plus any interest on a monthly basis. If you don’t make payments, your car will be repossessed.

More From OMY: Best Personal Loan in Singapore (Fast Approval and Low Interest Rates)

What Is the Maximum Amount You Can Get from A Car Loan?

The maximum amount you can get from an auto loan in Singapore is around 60% to 70% of the Open Market Value of your car.

  • If your motor vehicle with OMV is less than S$20,000, the maximum Loan-to-Value is 70%
  • If your motor vehicle with OMV is more than S$20,000, the maximum Loan-to-Value is 60%

Despite this, keep in mind that it’s possible for you not to receive the maximum Loan-to-Value. The financial institution of your choosing will factor in all your other debt obligations before deciding the final amount you can qualify for. Not only that, but car loans in Singapore must comply with the Total Debt Servicing Ratio rules.

Car Loans in Singapore vs. Loans from Dealerships

If you’re a first-time car buyer, you’re probably wondering whether it’s better to get an auto loan in Singapore from a bank or your dealership. There are a few things to consider to ensure you’re making the right choice.

First, think about the total cost of the loan, particularly the loan duration and interest rate. On average, car dealerships charge 3.70% to 4.50% in interest. Meanwhile, banks usually charge 2% to 4%.

When it comes to the duration of your loan, you will pay more when you go for a longer tenure. It’s also worth noting that dealerships charge buyers higher processing and administrative fees compared to banks. Dealerships may even charge car buyers who opt to repay their loans early.

Dealerships are laxer with their requirements, although they may charge higher interest rates to safeguard the company from risks. It’s also normal for dealerships to not check out an individual’s credit score and simply rely on previous bank statements for approval.

Best Car Loans in Singapore

Wondering what the best car loans in Singapore are? We’ve compiled them below. If you don’t have time to examine each auto loan in Singapore, take a look at the summary table we’ve prepared for your convenience so you can compare each option side by side.

Car Loan Tenure Interest rate
Capitall Car Loan Based on the life span of your vehicle To be determined by Capitall
DBS Car Loan

DBS Green Car Loan

7 years

7 years



UOB Car Loan

UOB HP50 Car Loan

7 years

7 years

2.78% (new and used cars)


OCBC Car Loan 7 years

7 years

7 years

2.48% (electric cars)

2.78% (diesel and petrol cars)

2.98% (COE)

Hong Leong Finance New Car Loan

Hong Leong Finance Used Car Loan

7 years

7 years



Motorist COE Renewal Loan n/a n/a
DBS Car Loan

DBS Green Car Loan

7 years

7 years



UOB Car Loan

UOB HP50 Car Loan

7 years

7 years

2.78% (new and used cars)


Capitall Car Loan

If you’re unsure if you qualify for an auto loan in Singapore from banks, this private finance company for car loan is your best bet.

With the Capitall Car loan, you can enjoy a simple application process with minimal paperwork. Upon applying, a Capitall staff will reply to you in just 30 minutes. Once you get all your documents in order, your loan can get approved in as fast as one business day.

One of the best things about this private finance company for car loan is it tailors loans to suit the unique needs and preferences of customers. For instance, you can benefit from customised repayment options. There are also no hidden terms, and your information will be treated with confidentiality.

As per the loan tenure, Capitall offers a flexible tenure that is based on the life span of your vehicle of choice.

Want to apply for this convenient car loan? Visit this page.

DBS Car Loan

If your priority is to look for the cheapest car loans in Singapore, this is an option worth considering.

For this car loan, you can enjoy a hassle-free application when you log in through your digibank and/or Singpass. Completing your application for this auto loan in Singapore just takes a few minutes.

As for the loan tenure, you can select up to 7 years depending on your circumstances. When you apply for this auto financing online, you can enjoy 3.18% interest per annum (fixed) with an EIR of 5.89% based on the 7-year loan tenure.

Apply for this loan here.

It’s also worth mentioning that DBS has a Green Car Loan if you’re considering buying a new or used green car to lower your carbon footprint.

For this loan, the interest is 2.88% per annum (EIR 5.36% based on a 7-year loan tenure). There is a minimum loan amount of S$10,000 and a tenure of 1 year or more. This auto financing promo is only valid from 1 January 2023 to 31 January 2023.

Apply for the DBS Green Car Loan here.

UOB Car Loan

Another standout when it comes to the best car loans in Singapore is the UOB Car Loan. Whether you want to purchase a new or used car, this car loan offers competitive interest rates that will help you save money in the long run.

The interest rates for new and used car loans start at 2.78% per annum with an EIR of 6.03%. If you want to max out the loan tenure of 7 years, the interest will be the same, but the EIR will be at 5.32%.

With this loan, you can benefit from fast processing and approval with a myriad of dealers.

UOB has a useful car loan instalment calculator on their page that you can use so you will know what to expect if you apply for this car loan in Singapore.

Bonus: Another car loan from UOB you should consider is the HP50 Car Loan. This is the only car financing in Singapore option that lets you halve your monthly payments so you can enjoy improved financial flexibility.

For 59 months, you can get 50% off your monthly car instalments. Not only that, but at the end of your loan tenure (60th month), you can also either redeem your vehicle by paying the final instalment, enter into a sell and lease back scheme with your dealer, or trade-in your current car at the prevailing market price to finance your next dream car.

For this loan, the flat interest rate is 3.88%, with an EIR of 7.47%.

OCBC Car Loan

The OCBC Car Loan is another affordable option for those who want to finance their dream car. With this car loan, you can have a loan tenure of up to 7 years and borrow 70% of the purchase price or valuation of your car, whichever is lower. This loan is so convenient and you can get applied in 60 seconds before visiting the showroom.

If you’re buying an electric car, the interest for this car loan is 2.48% per annum. If you take a 1-year loan tenure, you can enjoy 4.55% EIR. Meanwhile, your EIR will be at 4.65% if you max out the 7-year loan tenure.

For petrol and diesel cars, the interest rate is 2.78% per annum. For 1-year loan tenures, the EIR is at 5.09%. Meanwhile, the EIR is at 5.19% for 7-year loan tenures.

For COE, you can enjoy a competitive interest rate of 2.98% per annum with an EIR of 5.46% for 1-year tenure, and 5.54% for a 7-year tenure.

Apply for this car loan here.

Hong Leong Finance Car Loan

If you’re looking for a new car loan for a company or for yourself, you need to put Hong Leong Finance’s new car loan on your list of choices. With this car financing in Singapore, you can become a car owner and enjoy an attractive interest rate of only 2.78% per annum which is fixed so you can protect yourself from any rate hike. This auto financing offers up to 7 years of loan tenure so you can enjoy improved flexibility.

Curious about this car loan? Click here to find out more about it.

Meanwhile, Hong Leong also has a car loan geared towards individuals who want to purchase used cars. With the Hong Leong Finance used car loan, you can enjoy 3.08% interest per annum, as well as a maximum loan tenure of 7 years.

Check out this page to know more about this loan.

Motorist COE Renewal Loan

Motorist acts as a middleman between individuals who want to renew their CEO and a private finance company for a car loan of your choosing. This can be Hong Leong Finance, UOB, or Maybank.

This fuss-free loan is designed to be easy and fast. What’s great about Motorist is they help you by recommending the best time to renew your COE. There is also a free loan calculator that you can use so you can get a clear estimate of your loan repayment based on the Prevailing Quota Premium, loan tenure, and loan amount.

This company also offers a free pre-COE inspection in their partner workshops to ensure your car is suitable for COE renewal. To guarantee that this COE loan interest rate is the lowest you can find, Motorist promises to give car owners S$50 if you can find a better interest rate elsewhere, no questions asked.

Know more about Motorist COE Renewal here.

A Word from OMY

Buying a car is one of the most major (and expensive) purchases you’ll make in your life. If you want to achieve this aspirational purchase easier, familiarising yourself with the best car loans in Singapore is crucial.

Now that you know different options for car financing in Singapore, you can make a more informed decision by comparing various loan tenures, interest rates, and ease of applications. Soon, you’ll be in the driver’s seat of your dream car.

More from OMY: Guide To SME Loan In Singapore

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