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Applying for a Car Loan in Singapore: Important Things to Think About

Applying for a Car Loan in Singapore: Important Things to Think About

Have you been thinking of buying a car but the money you have is not enough? Well, you do not have to wait any longer because getting to own and drive the car of your dreams in the streets of Singapore is now easy and fast through car financing. This post takes a closer look at car loans in Singapore to help you understand the most important things to know.

Car Financing in Singapore: What Options Do You Have?

In Singapore, there are two main car financing options that you can choose from; buying through a dealership and buying directly through a bank loan.

If you opt for the dealership, it means that a vehicle dealer will handle all the paperwork for the car plus funding. Because dealers do not fund the purchase, they still have to deal with lenders to organize the financing of the purchase. The cost of the car is likely to have an overhead that banks pay to the dealer.

If you do not want to deal with third parties when looking for car loans, it is also possible to walk directly to the lender and ask for a car loan. This method will be pretty straightforward and is likely to be cheaper because there are no intermediaries. Note that in both cases, you are getting a loan that should be repaid within a specific term and it is important to stick to the agreed car loan Singapore agreement.

Although the above two are the main options, you might want to consider a third option – using a personal loan in Singapore to pay for your car. You first take a personal loan, pick the preferred car, and pay. You might also want to use this method because the cost will not have unnecessary additions or third parties. However, you will still need to ensure that the personal loan is repaid in full.

What to Think about When Applying for a Car Loan

The most important thing when applying for a car loan is the interest rate. Like other types of credit, you should look for a loan that is affordable, and that comes with no hidden charges. Other considerations include:

  • The term of the loan: When choosing a car loan, the faster you can clear it, the better.
  • Decide whether to buy a new or pre-used car: New cars are pretty expensive because you will be the first owner. So, if you want to keep the cost lower, a pre-used model will work just fine.
  • Resale value: If you do not intend to hold the car for a long time, it will be a good idea to select the model with a good resale value. This will help you to recover some money after using the car for some time.
  • The cost of running the car: While the main focus when buying a car is about turning the engine on and driving off, you also need to think about the cost involved. Therefore, as you budget for the loan repayment, ensure you consider cash for gas, repairs, and parking over the course of your vehicle ownership as a part of the expense of the car.

Why You Should Work with Lendela

Now that you know the most important things to consider when taking a car loan, it is important to work with Lendela to increase the chances of loan approval and get better terms. Instead of limiting yourself to only a few traditional lenders, cast your net wider for more options. Here is how it works.

Visit Lendela to make a short application for car financing Singapore. Then, Lendela will forward the application to different lenders and dealers and receive offers. These are preapproved offers from legit entities willing to work with you. So, carefully review the offers and pick your preferred one.

Finally, Lendela will book an appointment so that you can sign the loan papers. So, go ahead and sign them and drive off in the car of your dreams. Congratulations!

Now, the remaining part is for you to repay the loan over the entire loan term.

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by Dirk DeBie // Contributor to Businessing Magazine.

Opinions expressed by contributors are their own.