Advisory
Still can’t decide whether to buy a car by paying cash or through car financing? You need to consider some factors when choosing which option best suits you.
Buying a car is one big purchase that an individual can make. Of course, you can buy a car with cash or through financing. But paying in cash might be hard for some individuals. Thus, they prefer to apply for a car loan to pay in instalments.
Buying a car through a car loan allows you to build and enhance your credit history. You can use your available cash on hand or in the bank on other essential matters. Besides that, with a car loan, you can build equity.
Once you complete your payment, you’re free to sell or trade it in on a new car. Moreover, you get a car with no mileage limit and a lower insurance rate. Plus, you are free to customise your vehicle.
The only drawback about car loans is that you need a downpayment, either in trade or cash. Cars quickly depreciate once used. It would be worth little by the time you pay it off ultimately. And lastly, your vehicle might be at risk of being repossessed by the bank. That’s if you fail to repay and get defaulted.
With car loans, people can buy a car without worrying about their funds. In addition, there are many banks you can choose from.
One of the recommendable banks you can visit is Singapore Standard Chartered Bank. The bank offers Auto Finance, which has several features that clients will enjoy.
Auto Finance can help you get your dream car. Here is what you’re going to enjoy if you get an Auto Finance:
Apply for a car loan through Standard Chartered Branch. Speak with your preferred car dealer, who will assist you throughout the application.
But first, be sure you have decided what vehicle you want. Also, you should know whether you’re eligible for the loan.
Here are the Eligibility Requirements you need to meet:
Important Note: Whatever the result of your application, approved or declined, it’ll reflect in your credit history. Thus, it could have a significant impact on your credit score. To make a clear
You can choose what repayment plan you think you can afford to pay. For example, Standard Chartered Car Loan offers 12 to 84 months of loan tenure. But note that the longer you pay, the higher the interest rate will accumulate.
Standard Chartered Car Loan offers different interest rates: For new cars, they offer 2.48%, while for used vehicles, 2.78%.
Have access to the Wide Distribution Network
Buying a car with Standard Chartered Bank won’t be that hard since the bank partnered with a vast network of car dealers across Singapore.
Standard Chartered Bank Singapore offers several payment channels for car loans. You can pay through GIRO, AXS stations, Self-service, automated machines (S.A.M), or the bank’s online banking platform.
Or, if you’re more comfortable paying it by cash, you can send it through cash deposit machines.
There are things you need to comply with first in applying for a Standard Chartered Car Loan. First, you have to submit the completed application form. Then, you have to provide further requirements. It’s for them to help assess your car loan application.
Standard Chartered Bank requires borrowers to submit the following documents:
Identification Documents to submit are the following:
Singaporean citizens and Permanent Residents need to submit a front and back photocopy of NRIC. Plus, a copy of the Passport.
For Foreigners, all you need to submit are a copy of their Passport and a copy of their Employment Pass. Submit also any of the following documents:
Income Documents to submit:
The amount of loan you can take depends on what type of car loan you avail of. Standard Chartered Bank offers New Car Loans and Used Car Loans.
But before that, note that banks comply with the Monetary Authority Singapore (MAS) Regulations. Therefore, the vehicle’s loan amount will depend on its Opening Market Value (OMV).
New Car Loans: Once the vehicle’s OMV is less than S$20,000, the bank can finance the borrower up to 70% of the vehicle’s price. But if the OMV is more than $20,000, Standard Chartered Bank will finance 60% of its cost.
Used Car Loan: Standard Chartered Bank doesn’t specify the vehicle’s maximum age for the used car loan. Generally, banks offer used car loans for cars less than ten years from their original registration date.
The bank can finance you up to 70% in a used car loan with loan terms from one up to seven years. But note that the combination of the vehicle’s age and the car loan term must not exceed ten years.
Car Refinancing: You can avail of this one if you have an existing car loan from the other bank. Ask through SCBS’ hotline or customer service about their refinancing interest rates. If you think their interest rate is more favourable than your existing loan, you can avail of this product.
Your monthly loan payment will depend on the car price, length of the loan, and down payment. In addition, the interest rates incurred on car loans tend to be higher than those on new car loans.
Using the bank’s calculator, you’d be able to see how much monthly instalments you need to repay over time. Just indicate what car type you desire to take and how much loan amount you need.
Afterwards, you choose your preferred loan term. Then, click the “Calculate” button to get the result.
Standard Chartered Bank can grant you instant loan approval, given that you have a good credit history. Also, the bank will check your income profile to see whether you can repay the loan based on your chosen loan term.
Included in their evaluation is the age of the car. Ensure that the vehicle is ten years old from its original date of purchase. Otherwise, it will not be eligible for financing.
You should be aware of the following fees when you apply for Standard Chartered Car Loan:
But if it’s beyond 12 months, it would be 20% of outstanding interest plus 1% of the balance payable.
Important Note:
If you want to settle your loan earlier, the bank will ask you to submit an Early Settlement Form. There are two forms you must accomplish. One is for the customer, and one is for the car dealer.
The bank will ask you to submit all necessary forms at any SCBS local branches. First, be sure that you fully understand the terms and conditions applied. Then, sign the papers before you present them.
You can request early full settlement quotes during bank working days. That is from Monday to Friday, 9 a.m. to 5 p.m. It takes two business days before you get your requested quotations.
You can quickly transfer funds if you wish to settle the loan immediately. You can transfer the funds directly to your repayment account. Repayment channels could be through Cashier’s Order, Cheque, or Cash to any local branch of SCBS.
Be aware that the process will take three business days. Instructions will be processed once the bank receives your complete settlement forms and funds.
Vehicles are one essential property in Singapore. You can buy one if you have saved enough money for it or through car loans. But note that you should first check your financial capacity either of the two.
Do not push yourself to acquire a vehicle if you’re not financially ready. Moreover, considering car loans, it’s better to seek the financial help of professionals. Remember, car loans are different from short-term personal loans.
Personal loans can either be secured or unsecured, which you can use in any way. Should you need any short-term instant cash loans, you can try getting one from reputable moneylenders like Cash Mart Singapore.