Are you finding ways to get a car loan in Singapore? If yes, then you have come to the right place to get complete knowledge on the topic. You can quickly get car loans in Singapore by following specific steps. Before you decide to go for a car loan, make sure you compare the terms and conditions with the other financial institutions. Keep in mind your financial requirements, the amount you can invest, and the kind of car you are looking for.
Once you have decided, you can move towards the procedure of taking the loan.
To get the best car loan make sure you compare various projects with each other. Don’t rush by considering a few loan options and make the decision. This can land you in a soup. Below mentioned are a few details that will help you to get the best car loan as per your requirement.
Steps to Follow to Apply For a Car Loan
You can easily avail of a car loan either from a financial institution or the dealer’s agency from where you purchase the car. Different car loans come with different terms and conditions and rates of interest. You have to first decide on the type of car you are looking for, budget, and tenure of payment. Based on the rate of interest and tenure of installments, the financial institution or agency will grant you the loan. Below mention are the steps you have to go through to avail of a car loan in Singapore.
- Apply for Your Loan Amount:Once you have decided on your car loan’s budget, the next step is to fill in the application for it. In this step, you are required to provide certain documents for safety purposes.
- Your employment detail.
- Your existing financial documents
- Your income proof and document
- Approval of Loan: After the application is filled and sent the loan agency will approve your loan. The agency will either approve the loan on the same day for might take days lesser than two weeks. During this period you will be asked about your payment conditions and other details.
- Purchase of Car: The payment of the car will be made in two ways. This will happen either by the loan agency paying you and you to the car agency or the loan agency directly to the car dealer. In this step, you will get the keys of your dream car in your hand, and you are all set for a drive.
Different Categories of Car Loan
You can quickly get a car loan in Singapore as long as you are providing the right documents for your current financial condition. If your documents do not have any glitch, your loan application will be approved. Within days, you will quickly get a secured loan for your dream car. The approval also depends on your previous records of loan and credit score. You will soon get a loan if you have an excellent credit score.
Besides banks, you can even go to other financial institutions like Capitall Finance to get a loan. The agency’s dealers are connected with other institutions like financial institutions and insurance agencies to get you what you want. Based on these, you will find four different categories of car loans:
- Loan for a New Car:This is the most common type of credit given to a person who intends to purchase a new car for himself. The purchase is made usually for personal use. In Singapore, there are automobile agencies, financial institutions, and banks available to provide you loans without any inconvenience. All you need to have clear documents and high credit scores to get any loan in the region quickly. The period of the loan varies from 4 to 7 years, depending on your loan package.
- Loan for a Used Car: The criteria of a used car loan is quite different from the requirements of a new car loan. Used cars come in various categories and quality. Depending on this, the loan eligibility and requirements vary from one another. The prominence of a used car loan is generally low compared to a new car loan. This is because people do not invest much in an old car and prefer going to a new car loan. This type of loan comes with stringent policies. Thus before getting into this read the terms and policies of the loan very carefully.
- Loan for Commercial Purpose: The primary purpose of availing this loan is to purchase cars or cabs for commercial purposes. Many people invest their money in automobiles to get a reasonable rate of return. But at the initial stage of entrepreneurship, they acquire loans from financial institutions to get started. Therefore this type of loan is available to purchase automobiles for commercial purposes only.
- Refinancing of a Loan: Under this option, you can switch from one loan package to other loan packages of the different institutions. If you find on a later period of time that the other financing institution is providing a better rate of interest, you can switch to them. The existing financial institution will transfer your loan requirements to them, and now you will become their client.
How to Get a Better Deal
- Interest Rate: It is imperative to have knowledge of the prevailing interest rate in the market. Various agencies are sitting to fool you and charge a higher amount of interest rate from you. To avoid this, make sure you have the complete market knowledge of the prevailing interest rate.
- Negotiation: If you have the potential to bring down the car’s rate, have a negotiable deal with the dealer. Try and convince him to reduce the rate of interest and the price of the vehicle. Negotiation is critical when you are buying a car on loan. The dealer has the capability of reducing the interest rate varying from agency to agency. Different agencies take different interest rates from people. Thus make sure the negotiation is done right, and you pay a reasonable rate of interest to get your dream car.