{"id":11191,"date":"2020-12-31T11:01:53","date_gmt":"2020-12-31T03:01:53","guid":{"rendered":"https:\/\/blog.carro.sg\/?p=11191"},"modified":"2025-11-05T16:23:05","modified_gmt":"2025-11-05T08:23:05","slug":"car-buyer-guide-car-loans","status":"publish","type":"post","link":"https:\/\/carro.co\/sg\/blog\/car-buyer-guide-car-loans\/","title":{"rendered":"Car Buyer’s Guide: All You Need to Know About a Car Loan"},"content":{"rendered":"Everyone knows owning a car is expensive. Just take a quick look around and you\u2019ll see brand new entry-level cars starting at around $100,000 or used cars that will cost you around $8,000 a year. For most of us, this is a large expense and we\u2019ll probably resort to taking on a car loan to pay for the car.\u00a0<\/span>\r\n\r\nHowever, do another quick search on car loans and you are bombarded with options. Should you take a loan from the dealer or the bank? Or a financial institution? What are the differences?\u00a0<\/span>\r\n\r\nConfused? We don't blame you. Here's a guide on car loans every car buyer should check out!\r\n

How much can you borrow?<\/strong>\r\n<\/span><\/h2>\r\n\"\"\r\n\r\nThe Monetary Authority of Singapore (MAS) has set some rules for motor vehicle loans<\/a>. Firstly, the maximum loan tenure has been increased from five years to seven in 2016. So this means that, although you\u2019ll have lower monthly payments, you\u2019ll end up paying more interest for your loans.<\/span>\r\n\r\nSecondly, the amount that you can borrow depends on your cars Open Market Value (OMV). It\u2019s basically the real cost of the vehicle before it was imported into Singapore with the prices of freight, delivery and insurance. If you want to find out the OMV of a car, it\u2019s pretty easy. Just head on down to One Motoring to find out the average OMV of any car model<\/a>.<\/span>\r\n\r\nThis OMV value is vital in determining how much you can borrow. If the OMV value of the car that you\u2019ve picked is less than or equal to $20,000, you can borrow up to 70% of the final price of the car and pay the rest as a downpayment.<\/span>\r\n\r\nOn the other hand, if the car\u2019s OMV value is more than $20,000, you can only borrow up to 60% of the final price of the car and must cough up the other 40% of the final price as a downpayment.<\/span>\r\n\r\nBasically, this rule of paying a higher downpayment for more expensive cars is to ensure that you\u2019re financially stable enough to buy a more expensive car.\u00a0<\/span>\r\n

Where can you get a car loan from?<\/strong><\/h2>\r\nNow that you understand how much you can borrow, the next step is to choose where to get the loan from. <\/span>\r\n\r\nTypically, there are 3 options to choose from:<\/span>\r\n