Car Loan in Singapore: Answers to the Common Questions

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Most people in Singapore buy their cars using car loans, which is a good thing because they get to enjoy the asset and pay in installments. At a time when COVID-19 has negatively affected most people’s earnings, saving money to pay for a car in cash is a challenge. So, if you are short of cash and feel that it is time to buy a vehicle, car financing in Singapore can be a great option. 

Like other people in Singapore looking for car loans, the chances are that you have a number of questions running through the mind. Well, we can help you get the right answers. Keep reading to get all the answers that you need, and learn how to apply and get your car loan in Singapore approved fast. 

Answers to Common Questions about Auto Loans in Singapore 

Is Car Insurance Included in the Car Loans?

Before you can start the car and drive on Singapore roads, you must have appropriate insurance cover. However, the car loan you get does not include the insurance, and you need to pay it separately. The main reason for this is that lenders offer financial services and not insurance. However, you will be assisted to get good insurance firms to cover your car. 

I Do Not Have Enough Funds for Down Payment. Can I Still Get a Car? 

Yes, you can. Most auto loan lenders ask borrowers to raise some down payment as a way of reducing the loan principal and risk. Sure, some lenders might turn away the application, but there are some who will accept. This is why you are encouraged to work with lender comparison sites, such as Lendela, to reach out to more lenders and get your loan approved. 

If you do not have a deposit, the lenders will mainly rely on two things to gauge your creditworthiness; credit score and repayment ability. If the credit score is poor, the loan is likely to attract a higher interest rate. 

If I Have a Bad Credit Score, can I get a Loan in Singapore?

Yes, you can. However, it depends on how poor your credit score. Because most lenders use credit rating to gauge the creditworthiness of applicants, a poor credit score might make some applications get declined. However, it all depends on the lender. For example, online money lenders in Singapore might be willing to lend you money where the conventional bank would not.

If My Car Loan is Declined, is There Another Way of Getting a Loan to Purchase a Vehicle?  

Sure, you can take a personal loan in Singapore and use it to buy the vehicle of choice. The good thing about personal loans is that you are free to use them as you want. So, go ahead and use the cash to buy a car. 

The Smart Way to Apply for a Car Loan in Singapore 

Now that you have the answers to common questions, it is time to apply for auto financing in Singapore. Most people find it challenging because there are so many lenders, from common banks downtown to online lenders. Instead of making dozens of applications, the smart method is using Lendela, a comparison site that reduces application to a few minutes affair. Here is how it works: 

  1. Visit Lendela’s website to make an application. This should take you a few minutes. 
  2. Get offers from lenders and car dealers willing to lend you cash for buying a car. 
  3. Pick the preferred lender. Then, Lendela will help you to book an appointment. 
  4. Sign the loan agreement and drive off with the car of your dreams. 

Buying a car need not be an arduous task. With more lenders willing to come to your aid, all you need is to make an application through Lendela. Remember to follow the agreement to pay the loan. 

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