POSTED ON FEBRUARY 23, 2022
5 Steps on How You Can Apply & Get a Car Loan
5 Steps on How You Can Apply & Get a Car Loan
Finally the day you have been dreaming for to own your very first automobile, it’s so exciting and we are here to shed some light on how you can go about getting one. No more asking your friend’s for an lift to work or school and no more of take public transport to work.
Yes! To no more waiting, queuing and squeezing in the trains or buses. But wait there’s a problem to this that most of y’all will be thinking. If you are like majority of the population, you most likely didn’t have that bulk of sum saved up. Like at least $50,000 readily in cash.
What does that mean for you? We have Monetium’s Car Loan
Financial solutions here at Monetium Credit are well planned and organised for individuals, making it accessible to most of the public. Before you apply for one, do take a look at on guideline pointers. Below you’ll see the advantages of taking a car loan, what’s the maximum amount that you can borrow, the documentation that you’re required to submit and so much more. We will also be mentioning about the pros and cons of purchasing a new or used car with the car loan that you’re applying for, so stay tuned and read on!
1. What’s a Car Loan?
A car loan is an amount of borrowed money from a financial institution to buy a vehicle. You’ll have to repay the money, including all interest and fees, over a set period of time.
With monthly installments this usually makes the overall debt much more reasonable.
2. What’s the amount that I can borrow for my car loan?
In Singapore, the maximum car loan amount is determined by the vehicle’s Open Market Value aka OMV.
- If Open Market Value is equal to or below $20,000: You can borrow a maximum of 70% of the car’s price.
- If Open Market Value is above $20,000: You can borrow a maximum of 60% of the car’s price.
Here’s what happens:
Local Banks in Singapore, sometimes promise customers that they can borrow up to 70% of their purchasing price of the vehicle or the car’s valuation – Any one that has a lower sum. With that being said, the maximum amount you may borrow for your automobile is also determined by a number of factors below:
- Monthly Income
- Credit Ratings
- Other Existing Loans with Banks or Licensed Moneylender
The great thing is that because you’re using your car as collateral, most financial institutions will grant your car loan. It is, in essence, a highly safe sort of borrowing for them.
Pro tip: Before applying for a vehicle loan, set aside some time to accumulate enough money for a down payment. Take advantage of this period to enhance your credit score.
3. What’s the maximal loan tenure?
The maximum term for vehicle loans at certain financial organizations is seven years.
At certain institutions, the maximum term for used automobile loans is determined by the vehicle’s registration date. So, if your ideal automobile was first registered in 2014, the maximum loan term left is three years.
4. Three Advantages Of Taking Out A Car Loan
Car loans have their set of pros & cons:
Interest rates that are low High acceptance rates, especially for those with less-than-ideal credit.
If you can't repay the loan, you risk losing your automobile.
You must make a payment in advance. Once major aspect determines the benefits and cons listed above: auto loans are secured against your vehicle. As a result, they pose less of a danger to lenders, who can decrease their loan rates and accept your application in minutes.
You may even apply using i-banking or via your SingPass at some financial institutions.
5. Is it better to buy a new car or a used car?
When opposed to used automobiles, new cars offer numerous benefits. Because they haven’t been used before, they are in excellent form to endure many years of use. Furthermore, the chances of your vehicle breaking down anytime soon are minimal to none.
After then, think about the fees.
Because newer models are less likely to be damaged, everything is cheaper with a new automobile, from road tax to bank interest rates. Of course, you may weigh the convenience and excitement of a new vehicle against your budget.
Then there’s the automobile loan. If you don’t have enough money to buy your ideal automobile outright, it’s worth checking into the interest rates and fees.
Let’s say you want an Mercedes-Benz A-Class Saloon 180 Sport (A), priced at $157,000.
You can take a loan of $78,500 at an interest of 3.5%, 7 years loan tenure.
Here’s what that means:
- 3.5%, interest per year equals about $2,747.50 / year
- Multiply that with seven years, and you’ll pay $19,232.50 in interest alone
- Divide the total sum (interest plus original loan) of $97,729 to 84 (the number of months in your 7-year tenure) to get a $1,163 monthly instalment
Contacting Your Moneylender
Choosing a trustable Licensed Moneylender where you apply your loan from could be based on many different aspects such as the interest, repayment terms, terms and conditions related with the loan and etc.
Service You Can Trust
With us as your chosen credit institution, you can trust that we adhere to a strict code of ethics. All charges are communicated upfront; expect no hidden charges and costs involved.
Contact us at 6777-7775 or simply fill in the application form here.