Category: Loans & Insurance

Your Guide to Car Loan Interest Rates in Singapore

Car loan interest rates in Singapore

Looking for a comprehensive guide to Car Loan Interest Rates in Singapore? You’ve come to the right place! In this article, we’ll be bringing you through the offerings of all the top banks in Singapore.

Car Loan Interest Rates

A bunch of coins stacked up with a car in the background

Everybody knows how expensive cars are in Singapore. It’s almost impossible for the average joe to afford a car without some financial help. Here’s where the banks and financial institutions come in to help.

Car loans allow you to borrow up to 70% of your car’s Open Market Value (OMV), making it (slightly) easier for you to own your dream car. Every car loan offered in Singapore is pretty similar. You can choose your loan tenure, which varies from 5 to 7 years. And the terms and conditions are usually quite similar.

The biggest difference comes with the interest rates (although they’re not that far apart and quite competitively set). Interest rates for your car loan usually vary between 2.28% to 2.88% and vary for new and used cars.

Let’s take a look at the car loan interest rates offered by banks.

DBS

DBS in Singapore skyline

Considered by many to be one of the best banks to get your car loan from, DBS offers a 1 to 7 year loan at an interest rate of 2.28%. This interest rate applies to both Used and New cars, which is quite unique as many other institutions have different rates for the two types.

The minimum loan requirement is $10,000, which is similar to other banks. However, the bank doesn’t grant car loans for company cars.

UOB

If you decide to get your car loan from UOB, you’ll be paying about 0.5% to 0.7% more interest than if you had gotten your loan from DBS.

In the grand scheme of things, the figure might not seem like much, but trust us, it’ll still add up to a significant amount. UOB car loans begin from 2.78% for New cars and 2.98% for Used cars. Loan tenures are also from 1 to 7 years.

OCBC

OCBC Bank logo on the OCBC website

Similarly, getting a car loan from OCBC bank will also incur an interest rate at 2.78% for new cars. The car loan interest rates for a used car are 0.2% more, at 2.98%.

Additionally, the minimum loan requirement is $5,000 more, at $15,000. But that doesn’t mean you can’t get a loan below $15,000.

However, please keep in mind that if you’re applying for a car loan below $15,000, you will be required to pay a $200 loading fee.

Hong Leong Finance

At an interest rate of 2.48% for New cars and 2.78% for Used cars, getting your car loan from Hong Leong Finance might be a good shout. The company offers loans of up to 7 years and a minimum loan amount of $10,000.

Standard Chartered Bank

Another good option for you to get your car loan from is Standard Chartered Bank. The bank offers interest rates at the lower spectrum, with 2.50% for New cars and 2.80% for Used cars. The loan tenure and the minimum loan amount are similar to other banks too!

Maybank

At 3.25%, the car loan interest rate from Maybank is one of the highest. Additionally, the bank only offers a maximum loan tenure of 5 years, which is quite a significant difference.

Another condition of getting your car loan from Maybank is that you won’t be granted a loan if your car is an Imported Used car or if your car is a Rental.

Best Car Loan

So what’s the best option for you? Well, that’s for you to decide. But we have an idea of what the best option should look like.

Affordable Car Loan Price

Competitive interest rates that are lower than the in-house loans and similar to those offered by banks. But without all the hassle that comes with getting a loan from the bank.

Quick & Automatic Service

Some in-house loan options come with a lot of conveniences but charge an exorbitant admin fee. But loans from the bank are no different. The process is too long and can get confusing with all the paperwork. If only there was an option that has the perfect blend…

Fast & Convenient

Time is money. But when it comes to car loans, it’s way more than that. Not getting your car loan done as soon as possible will mean that you get your car even later. And we’re sure you won’t be able to wait for too long.Simple auto financing

Introducing to you… Genie Financial Services!

Genie Financial Services, a wholly-owned subsidiary of Carro, offers a dynamic approach to finance and insurance products. They offer incredibly accessible financial solutions tailor-made for each individual, pushing you one step closer to get behind the wheel of a car. Additionally, with a host of different insurance companies to select from, Genie also provides incredible insurance options for you.

Personal Car Loan

Genie Financial Services gives you more financial freedom. We offer you the best finance option that is tailored to take account of your individual circumstances and help you get behind the wheel of a new or used car. You can choose to get your car loan from Genie themselves or choose one of the major banks that they partner. It’s all up to you!

Car Insurance

Genie Financial Services gives you freedom of choice. With a host of different insurance companies to select from, we could provide you with the best insurance option that precisely covers your individual requirement at an unbeatable price. It couldn’t be easier.

Learn more about all of Genie’s different offerings today.

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Compare the Best Car Insurance Plans in Singapore

what's the best car insurance plans in Singapore

Getting car insurance is an essential step in your car ownership journey. Without it, you won’t be able to drive your new car. But, finding the best car insurance plan is not as easy as it seems. There’s a lot for you think about. To name a few, there’s the annual premiums, type of coverage and different clauses in the different plans.

For any driver, experienced or not, this whole process of choosing the right insurance policy can be really draining and confusing. It’s not as straightforward and simple as finding the cheapest car insurance plan. There’s a lot more to it. Luckily, there are a lot of car insurance guides you can find online from trusted sources.

If you’re still confused after doing your own research, don’t worry! We’ve come up with a comprehensive list of car insurance policies to help you compare the best car insurance plans in Singapore!

The Best Car Insurance Plan

Personally, we don’t think there’s such a thing as “the best car insurance plan” because everyone has different needs. Additionally, just like a personal insurance policy, your profile affects the policy premiums. This means that everyone will have different requirements to meet and prices to pay.

For this article, we’ll be comparing car insurance policies from five key players.

NTUC Income Drivo Premium

Great for new cars and drivers who aren’t heavy road users

NTUC Income offers best car insurance plans

If you decide on NTUC Income for your car insurance, the Orange Force will be at your disposal if you get into an accident. We’re sure you’ve seen them around, a first-aid trained rider who will provide assistance and ensure your safety. It’s certainly a really unique benefit that many other companies do not offer. For this alone, we feel that it’s an excellent choice for your car insurance as it guarantees you total peace of mind during accidents.

Apart from the Orange Force, the Drivo Premium plan allows you to visit any workshop whenever the need arises. There’s an option for you to purchase extra coverage to waive the standard $600 excess too! NTUC also offers additional schemes like FlexiMileage and NTUC Drive Master program. These schemes allow you to offset your annual premiums if you meet their requirements.

However, we feel that this car insurance plan is certainly more beneficial for new cars that are still under warranty and drivers who aren’t heavy road users. These will allow you to maximise your policy.

Etiqa Comprehensive Insurance

Perfect for seasoned drivers or the budget-conscious

Best Car Insurance plans from Etiqa

With only one plan in their arsenal, Etiqa offers a comprehensive no-nonsense plan for drivers. While many other companies cap their limits for young and inexperienced driver excess, Etiqa offers one of the youngest limits at just 24 years old. But of course, the caveat is that the excess charge is really high at $4,000. Another unique option that will surely appeal to owners of cars with a sun or moon roof. Etiqa offers an option for you to cover and claim for this part of your car for repairs. And the best part is, it won’t affect your NCD!

With personal accident coverage at $50,000, Etiqa offers a comprehensive plan with relatively high coverage. Additionally, if you happen to get into an accident, the company will even provide transport allowance, which is an awesome perk to have! If you decide to take up a car insurance policy from Etiqa, make sure you look out for their promotions (which happens almost every week).

FWD Classic Insurance

Probably the best car insurance plan for families

best FWD car insurance plan

Ask anyone about FWD insurance, and it’s likely that they’ll tell you the same thing; car insurance plans from FWD are perfect for families.

Why? It’s simple, really. FWD’s plans emphasize heavily on personal accident coverage, so you know that you won’t be hit too hard financially.

Additionally, FWD offers a one-time payment for children if both parents are permanently disabled or in case of their demise due to a car accident. These will assure you and give you peace of mind, knowing that you won’t have to burden your family if anything happens.

Furthermore, there are a lot of benefits when you sign up with FWD. For instance, all their plans come with transport allowance and they’ll even provide you with a replacement car.

While one of FWD’s requirements is that you can only visit their authorised workshops, it’s actually not that bad of a thing. When you visit one of their authorised workshops, you will receive an extended workmanship guarantee until your car turns 10. It’s a really good value-added service to have in your car insurance plan.

The best part of FWD’s car insurance plan? Their Classic plan is usually 30 – 40% cheaper than the average, which provides good value for money.

Aviva Lite Insurance

Good for drivers aged between 25 and 30

Best Aviva car insurance

Remember the Aviva insurance plan you signed up for while serving your National Service?

If you happen to still be a policyholder, we’ve got some good news for you! You’ll be able to enjoy preferential rates if you choose to sign up for Aviva car insurance. Yay to discounts!

Also, you’ll be able to save even more money if you opt for a dual year plan. Opting for this will save you an additional 5% on your premium!

Aviva also offers one of the youngest limits for young and inexperienced driver excess at 24 years old. So, if you’re a driver that fits the bill (younger than 24 years old or less than 2 years of driving experience), you should seriously consider getting your car insurance from Aviva.

Especially their Aviva Lite plan which is cost-efficient, making it perfect for younger drivers.

Budget Direct Comprehensive Car Insurance

For the cheapest possible car insurance

Cheapest car insurance with Budget Direct

If you’re looking for a basic and cheap car insurance plan, Budget Direct’s Comprehensive plan is what you should get. Depending on the driver and his record, their plans can go up to 40% below market average. Which helps you save a whole lot more on your annual premiums.

Even though you’ll have to pay extra for medical, personal accident and roadside support coverage, Budget Direct’s plan is quite good. It’s highly customizable, allowing you to pick and choose different options that best suits you.

No One Size Fits All Plan

To us, there’s no such thing as a one size fits all insurance policy that can be crowned as the “best”. Cheap doesn’t necessarily mean good and expensive plans don’t mean that it will fit your needs.

There are too many variables, considerations and requirements for you to think about. Which is exactly why finding car insurance can be quite a chore!

So how do you make it easier for yourself?

With CARRO’s sister company, Genie Financial Services, this troublesome task will become a whole lot easier! Through a hassle-free digital experience, you can select a car insurance policy from a list of trusted insurers, all from the comfort of your home.

Through a fast and easy process, you can sit back and relax while Genie takes over your application. You don’t even need to handle the paperwork (urgh) yourself!

You’re guaranteed to enjoy only the best deals for your plan! Getting your car insurance is now hassle-free!

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CARRO & NTUC Income’s Usage-Based Insurance For Car Subscription: All You Need to Know

usage-based insurance

In partnership with NTUC Income, CARRO has launched Singapore’s First True Usage-Based Insurance (UBI) program bundled exclusively into their car subscription service. The new initiative, which is backed by tech and data analytics, aims to lower the costs of driving in Singapore through its pay-as-you-drive model. This means that the less you drive, the less you’ll pay, allowing drivers to save more for the better things in life.

With the program being the first of its kind in Singapore, here’s what you’ll need to know about the UBI model, the technology behind it, as well as the benefits for consumers. 

How is Usage-Based Insurance Different?

Traditional auto insurance charges an annual premium based on the type of coverage you choose. 

The annual fees are also determined by the profile of the driver, as well as personal details like driving experience and claim history. Additionally, insurance companies take into consideration the type of car you drive, its engine capacity and age.

To reward those who have not made any claims over the past year, drivers will receive a no-claim discount (NCD) of 10% off their annual premiums. Your NCD bonus multiplies year-on-year, as long as you don’t make a claim, and is capped at a 50% bonus.

While traditional auto insurance uses a discount model based on a driver’s profile and history, UBI is a true usage-based offering – your monthly premiums are charged based on the exact distance driven. So, the lesser you drive, the lesser you pay. 

In this way, rather than offering you a discount that will only take effect during renewal, UBI offers more value to drivers as it allows them to maximise savings every month. 

The Technology behind UBI

The key behind UBI is Vehicular Telematics. This technology tracks your mileage and sends that data to a backend server to calculate your insurance premium for the month.  

vehicular telematics in usage-based insurance

While the use of telematics is nothing new to auto insurance, the joint offering from CARRO and NTUC Income is designed with the intention of maximising technology and data analytics to give back to consumers through higher savings. 

Currently, insurers are using telematics to reward safe drivers by assessing a driver’s risks through tracking driving behaviours like speeding and sudden braking. Discounts are only given after drivers have proven that they are safe drivers through the data tracked via telematics devices. 

On a secondary level, telematics has also been used to track how far a driver has driven. However, the huge difference is that these existing telematics products tie their discounts to tiers or distance brackets – below 5,000km, between 5,000km – 9,000km or above 9,000km – while UBI does not.

With UBI, you’ll find the first-in-the-market policy to charge you based on the exact distance travelled, calculated right down to the kilometre.

The Benefits

The biggest benefits that UBI offers are cost-efficiency and flexibility. 

As the policy charges you based on how far you’ve driven, this will be ideal for drivers with unpredictable schedules or those who only drive short distances each time. For example, a parent who only drives when she needs to drop off or pick up her kids from school.

Traditionally, how much you use (or don’t use) your car won’t affect your insurance premiums. But with UBI, you will most certainly benefit from your unpredictable schedule. You’ll simply pay for how much you use your car and will save more each month.

Enhanced Flexibility

As of now, the offering is exclusive to our Car Subscription plans, where you’ll get to enjoy even more flexibility, cut even more costs and enjoy amazing rebates when you drive less! 

The monthly subscription fee covers the UBI premium and comes with a monthly cap of 1,500 kilometres. If the distance you’ve covered for the month falls under this cap, you will receive rebates to offset your monthly fee. The rebates will be automatically deducted in your next billing. This gives you a truly convenient and flexible car ownership experience. 

Whatsmore, these rebates can amount to over $800 a year, further driving down your expenditure and maximising your savings! The enhanced flexibility you’ll enjoy is just another reason for you to switch from owning a car to subscribing to one.

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COVID-19 (Tindakan Sementara) Act 2020: Apa Artinya untuk Driver PHV?

COVID-19 Tindakan Sementara Tindakan untuk Driver PHV

Banyak pengemudi persewaan pribadi (PHV) merasakan dampak keuangan COVID-19 karena penerapan tindakan Circuit Breaker di Singapura. Karena sebagian besar tenaga kerja negara itu bekerja dari rumah, lebih sedikit orang di luar. Ini telah menyebabkan penurunan tajam dalam bisnis, yang mempengaruhi pendapatan banyak pengemudi.

Menanggapi hal ini, pemerintah memperkenalkan langkah-langkah dukungan seperti COVID-19 (Tindakan Sementara) Act 2020 untuk meringankan beban keuangan yang dibebankan pada para pengemudi ini melalui serangkaian langkah bantuan.

Langkah-langkah ini memiliki dampak langsung pada penggerak PHV dan bertujuan untuk meredakan kekhawatiran arus kas mereka. Jika pengemudi PHV memerlukan bantuan dengan pembayaran mobil mereka, mereka memiliki opsi untuk menunda pembayaran bulanan sewa-beli atau perjanjian penjualan bersyarat untuk kendaraan komersial selama jangka waktu yang ditentukan 6 bulan, dari 20 April hingga 19 Oktober.

Selama periode ini, perusahaan pembiayaan tidak akan dapat:

  1. Merebut kembali kendaraan komersial mereka
  2. Mulai atau lanjutkan proses pengadilan atau kepailitan terhadap mereka

Untuk memenuhi syarat untuk Bantuan ini, pengemudi harus memenuhi ini ketentuan UU:

  1. Memasuki kontrak sebelum 25 Maret 2020
  2. Tidak dapat membayar cicilan mulai 1 Februari 2020 atau lebih baru karena COVID-19
  3. Kendaraan tidak disewa
  4. Kendaraan tidak dibeli untuk penggunaan pribadi
  5. Tidak memiliki angsuran yang belum dibayar sebelum 1 Februari 2020, atau jika kendaraan diambil alih sebelum 20 April 2020

Apa yang tidak Anda ketahui tentang tindakan Bantuan

Sementara tindakan pertolongan mungkin tampak cukup bermanfaat bagi pengemudi PHV, tindakan tersebut disertai dengan implikasi tersembunyi yang mungkin tidak Anda sadari.

COVID-19 (Tindakan Sementara) Act untuk driver PHV 2020
Sumber: Shutterstock

Jadi, sangat penting bagi Anda untuk membaca yang tersirat dan sepenuhnya memahami dampak jangka panjang langkah-langkah ini pada Anda dan tidak membiarkan manfaat jangka pendek menaungi pengambilan keputusan Anda.

  1. Relief tidak membebaskan biaya keterlambatan dan bunga

Meskipun Anda akan dilindungi dari legalitas jika Anda melewatkan pembayaran bulanan Anda dengan Relief ini, Anda masih dapat dikenai biaya keterlambatan, bunga keterlambatan pembayaran, dan biaya tambahan sesuai kebijaksanaan perusahaan atau bank keuangan.

  1. Jumlah pinjaman Anda akan lebih tinggi

Meskipun pembayaran bulanan Anda telah ditangguhkan, bunga, biaya, dan angsuran yang berlaku masih harus dibayar pada akhir periode yang ditentukan.

Jadi, mengambil Relief ini akan benar-benar meningkatkan jumlah pinjaman Anda secara keseluruhan. Ini berarti bahwa sisa angsuran Anda juga akan lebih tinggi.

  1. Suku bunga awal akan berubah

Minat pembelian sewa pada umumnya ditetapkan dan dihitung berdasarkan suku bunga flat untuk periode pinjaman, sebagaimana disepakati dalam kontrak. Oleh karena itu, penundaan atau perpanjangan jangka waktu pinjaman akan menghasilkan biaya bunga dan biaya lebih lanjut (jika berlaku).

  1. Masa pinjaman Anda mungkin tidak diperpanjang

Dalam kebanyakan kasus, masa pinjaman asli Anda akan bertepatan dengan masa berlaku COE Anda. Oleh karena itu, menunda pembayaran mungkin tidak berarti Anda dapat menunda pembayaran Anda hingga periode yang ditentukan hingga 6 bulan karena tidak ada ruang tambahan untuk perpanjangan.

Sangat mungkin bahwa Anda mungkin perlu membayar jumlah yang ditangguhkan secara sekaligus pada akhir periode penangguhan.

  1. Relief tidak memulai secara otomatis

Sebelum melewatkan cicilan, Anda harus terlebih dahulu memeriksa untuk melihat apakah Anda memenuhi syarat untuk bantuan. Jika Anda memenuhi syarat, Anda dan penjamin / penjamin Anda harus kemudian melayani perusahaan keuangan dengan Notification for Relief.

Bahkan kemudian, perusahaan pembiayaan harus setuju bahwa bantuan berlaku. Jadi, prosesnya bisa memakan waktu. Antara mendapatkan perjanjian dari perusahaan dan ketika Anda melamar, Anda harus terus membayar cicilan Anda. Jika tidak, Anda akan dikenai keterlambatan pembayaran dan / atau biaya bunga tambahan.

Pelajari lebih lanjut tentang langkah-langkah ini di FAQ MOL untuk Perjanjian Sewa Beli.

Apa yang harus Anda pertimbangkan sebelum mendaftar

Setelah mengetahui tentang implikasi potensial ini, apa yang harus Anda lakukan?

COVID-19 (Tindakan Sementara) Act
Sumber: Shutterstock

Pertama dan terpenting, tanyakan pada diri Anda, apakah penundaan itu benar-benar diperlukan untuk Anda? Ingatlah bahwa Bantuan itu dimaksudkan sebagai tindakan sementara dan hanya akan bermanfaat untuk jangka pendek. Dalam jangka panjang, implikasinya bisa lebih menyakitkan Anda.

Tetapi jangan hanya mempertimbangkan dampak jangka panjang dari bantuan ini terhadap Anda, Anda juga harus memperhitungkan dampak ekonomi jangka panjang COVID-19 secara keseluruhan.

Dengan resesi menjulang dan ketidakpastian tentang berapa lama bagi kita untuk pulih, masa sulit ada di depan. Jadi, meningkatkan hutang Anda di saat-saat yang tidak pasti ini jelas bukan hal yang bijaksana untuk dilakukan. Anda tidak ingin menempatkan diri Anda pada posisi yang lebih buruk dalam waktu 6 bulan, kan?

Karena itu, rekomendasi kami adalah bagi Anda untuk terlebih dahulu mempertimbangkan langkah-langkah alternatif sebelum mengunci penundaan.

Beberapa langkah alternatif yang dapat Anda ambil sekarang termasuk:

  1. Diskusikan dengan perusahaan keuangan Anda tentang skema pembayaran sebagian
  2. Pelajari kembali keuangan Anda untuk melihat apa yang dapat Anda kurangi untuk memenuhi pembayaran ini
  3. Bandingkan nilai penangguhan pinjaman lain Anda sebagai gantinya
    1. Yaitu. Pinjaman HDB memiliki tingkat bunga yang lebih rendah dan nilai properti akan terapresiasi seiring waktu, oleh karena itu akan menjadi pilihan yang lebih baik dan lebih murah bagi Anda untuk menunda
  4. Memanfaatkan paket bantuan yang ditawarkan untuk driver PHV, seperti PPSP diluncurkan oleh Kementerian Transportasi

Jika Anda benar-benar tidak mampu mengikuti pembayaran bulanan, Anda harus mempertimbangkan untuk menjual kendaraan Anda. Ingatlah bahwa mobil di Singapura mengalami depresiasi setiap hari. Jadi, memegang mobil Anda sebenarnya merupakan kewajiban karena Anda akan kehilangan lebih banyak uang seiring waktu.

Pada akhirnya, hal yang penting untuk diingat adalah bahwa Undang-Undang ini tidak menghapus atau membebaskan kewajiban kontrak pemberi kerja dengan pemodal mereka, tetapi berupaya untuk sementara waktu melarang penegakan kontrak selama periode pertolongan. Angsuran yang belum dibayar dan biaya lainnya seperti bunga atau biaya untuk keterlambatan pembayaran akan terus menumpuk selama periode bantuan.

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