Is DBS Car Loan in buying a car loan?
Buying your vehicle in Singapore is one significant achievement you can get, especially the country’s one of the most expensive places in the world.
Even buying a sedan type car could cost you S$110,000, which is almost equivalent to the 30% of an HDB property. That’s likely getting a three-bedroom property!
But Singaporeans manage to get their car – all thanks to the car loan services. I bet you’re searching where to get a car loan. Before you apply for a loan, here are some essential factors you must consider first.
Getting a loan when you’re not financially stable isn’t a good step. So prepare yourself, your pocket, and your mindset.
How do car loans work in Singapore?
One way to buy a car in Singapore is through car loans. It’s about borrowing a sum of money from a lender, either from a bank or a car dealer. You need to repay the loan depending on what loan tenure you choose.
When taking out a car loan, you can take as much as 60% to 70% based on the vehicle’s purchase price. But that depends on the Open Market Value (OMV) of the car.
If the OMV of the vehicle falls S$20,000 or lesser, you can take a car loan amount up to 70% of the car’s purchase price. But if the OMV is S$20,000 and above, you can get up to 60%.
Under the Monetary Authority of Singapore (MAS), you can repay the loan in not more than seven years. It’s the car loan’s principal amount plus the incurred interest that you’re going to fulfil in repaying over time.
When are you prepared to get a car loan?
Here are the top three factors you need to check before getting a car loan.
Check Your Credit Status
Make sure you have a clean credit record when you take a car loan. With a good credit score, you’ll probably get a higher loan quantum. Otherwise, you’ll receive a lesser quantum.
Always bear in mind that credit records affect your loan application. Things that would bring your credit score up and down are the following:
- Your loan payment behaviour in your past transactions. It could be unsecured loans like credit cards or other loan products.
- Applying for various loans in a short period.
- Default loan records in previous transactions
If you want to know your current credit status, you can get it from the Credit Bureau of Singapore through eNets. It will only cost you $6.42.
Zero-account holders and those with poor credit performances can build and rebuild by taking up short-term loans. But, again, repay your loan on time and don’t apply for multiple loans. That would only cause your score to drop.
Consider applying for a Credit Card. It’s one easy way to start building your credit score.
Shop for low-interest rates and inexpensive loans
Banks and other lending institutions are popping out in the suburbs of Singapore. That gives you more options when you look for car loans in Singapore.
It might be overwhelming when you search which institution you want to apply for a car loan. However, the best thing to do about it is to look for low-interest rates.
Try looking for the best car loan in Singapore and compare them. Mostly, car loan interest rates are capped at 2% to 3% per annum. But don’t just look into numbers. Instead, it would be best if you compare all your options.
Is DBS Car Loan the best choice to make?
DBS is one local bank in Singapore, offering different types of loans. Thus, DBS serve to meet the borrower’s financial needs.
DBS Car Loan is one of these loan products. Read up and know more about DBS Car Loan.
Features and Benefits of DBS Car Loan Singapore
DBS Car Loan Maximum Amount
Enjoy DBS Car Loan with its flexible loan terms and generous loan amount. You can take a loan amount of as much as 70% of the car’s purchase price. That is when the open market value of the said vehicle is S$20,000 or lesser.
But if the OMV is more than S$20,000, DBS can grant you a loan equivalent to 60% of the vehicle’s purchase price.
DBS Car Loan Tenures
What is more incredible is that you can repay your DBS Car Loan for up to seven years. Review your financial status thoroughly and see which loan term you can afford to repay over time.
Buying a car through a car loan doesn’t mean you won’t have to pay in cash. You still need to prepare for your down payment of at least 30% of the purchase price. The higher the amount you pay in cash, the lesser the car loan amount you’ll borrow.
DBS Car Loan Interest Rate
DBS provides the cheapest car loans for used cars for 1.99% among all banks offering car loans. However, take note that the age of the vehicle matters. DBS doesn’t provide used car loans that are more than ten years old.
For the new car category, the DBS car loan interest rate drops at 2.78%. However, the said interest rate is almost the same as the interest rates offered by other banks. That is due to the regulation of the Monetary Authority of Singapore (MAS).
DBS Car Loan Application Process
Another thing, you can apply instantly with DBS Car Loan. No waiting time, no long queues. It doesn’t even require you to leave your home.
Apply using your SingPass. Once all your Retrieving your personal details from SingPass will make the digital application more straightforward and faster!
You must have a DBS/POSB digibank app. It is available in App Store, Google Play Store, and Huawei App Gallery.
DBS Car Loan Calculator
DBS provided a tool to help you estimate how much car loan you will take. That’s if you’re unsure how much you can afford to get. With the DBS car loan calculator, you’d be able to know the maximum loan amount you can take.
DBS Car Loan Hotline and Customer Service Portals
DBS provided a Help and Support Portal containing some useful guides. You can also phone them through these contact numbers:
- 1800-111-1111
- 6333-0033
- (65) 6333-0033 (for overseas)
Keep in touch with DBS through their “Get In Touch with Us” feature. In this section, provided are quick links for self-service options. For example, it could be about your Accounts or Card and Loans.
For any concerns, you can contact them through the following:
- Digital Services
- DBS Digibank
- DBS Digibot (a messaging service)
What is DBS Car Loan Early Settlement?
An early settlement means you want to pay your car loan in advance instead of spending it on its due date. It is possible, but you have to pay additional charges.
Take note of the following DBS Fees and other Charges:
Early repayment Fees:
- 20% of the Interest Rebate
- 1% of Total Financed Amount
A 20% fee of the Interest Rebate
In DBS, even if you pay your car loan earlier, you still have to pay the balance of the outstanding instalments that are payable under the Hire Purchase Agreement. An interest rebate will be deducted from the said amount, plus other charges and expenses.
A 1% fee of Total Financed Amount
Total Financed Amount refers to the vehicle’s full price* minus all the total deposits that include cash, allowances or trade-ins (for used cars).
*That includes the GST, accessories, and other related fees, expenses and charges.
Late Interest Payment Fees:
The said fees will range from 3% to 5% per annum. Plus, the average prime rate of the three local banks* based on any overdue amount.
(*DBS Bank Ltd., OCBC Ltd., and UOB Ltd.)
Final Thoughts
Buying a car through car loans should be thought of ahead of time. It is crucial to plan it thoroughly, considering your financial status. It’s almost equivalent to purchasing a property.
You need to be financially prepared if you want to make a purchase. If you need help, you can seek a professional loan adviser. That would help you assess if you can afford to take up a car loan.
But in Singapore, securing a home is more important than buying a car. So, it’s wiser to first take an HDB flat before getting a vehicle.
Aside from car loans, DBS also offers various loans such as personal loan, home loan, student loan, and many more.
But if you need more cash than you wish to claim instantly, you can get a loan from money lending institutions like Cash Mart. They offer low-interest personal loans, which are more attractive than banks.
Get a loan from Cash Mart, a trusted moneylender that abides by the Moneylenders Act. No collateral and a hassle-free application!