(Updated 31 January 2017) Are you planning on buying a vehicle? OCBC Car Loans are the customer’s top choice. Find out how it fits every buyer’s needs.
Having a car in Singapore brings the convenience, peace and freedom commuting will never have. Driving to your office, a family function, a dinner date or anywhere on the island with your own car takes your lifestyle up a notch. It has even become a necessity for many more than just a whim.
When you think of buying a car, one of the fundamental questions to ponder is how to finance it. Unless you have saved up enough to pay the full price in cash, you need a car loan to fit your needs. So are OCBC car loans the best choice you have?
OCBC offers car financing for new vehicles to Singaporeans, Permanent Residents, and foreigners with proper work permits. The applicant must be 21 years old and interested in buying a brand new car. The bank is proud of its flexible term of up to 7 years and competitive interest rate of 2.78% a year. However, be mindful that the longer the term, the higher is the Effective Interest Rate. Therefore, when comparing interest rates, it is best to use the EIR instead of the interest rate per annum as it is more accurate.
If you plan to apply, you have to present a valid ID, income documents such as a payslip, the latest 6 months CPF contribution or Income tax notice of assessment, a duly filled up application form, and a work permit you are a foreigner. Also, you have to prepare the initial deposit as the bank will only finance 60 to 70% of the car’s market value. You can get more information through OCBC’s online Car Financing Enquiry Form.
The maximum finance amount you can get depends on the Open Market Value of the car you want to purchase. If the vehicle costs less than S$20,000, then OCBC will finance 70% of the vehicle’s market price. For cars worth more than S$20,000, the bank will only finance up to 60%.
Should you decide on OCBC Car Financing, you will have to apply through your car dealer and pay the initial deposit. It is when you have to pay cash for the downpayment. Then, wait for your dealer to contact you for the next meeting. You have to sign the Hire Purchase Agreement and pay the remaining downpayment this time.
Remember that the bank still has to evaluate the finance amount it will approve based on your financial standing and creditworthiness. Therefore, any difference between the market value of the car and the approved finance amount must be shouldered by you. Take note that your dealer might also demand the first month’s instalment.
The dealer will then set another meeting for you to get your car. Expect OCBC to send you the Hire Purchase Agreement and your payment schedule via mail. Then, make your monthly repayments in cheque deposit boxes or cash at any OCBC branch.
If you are eyeing to buy a used car from a car dealer or a direct owner, you can consider this loan product. It has a fixed interest rate of 2.98% per year, a loan term of up to 7 years and possibly a finance amount of 60 to 70% of the car’s valuation.
You can apply for a car loan through your car dealer or directly with OCBC. Either way, expect your credit agent or car dealer to ask for your first month’s instalment. You also have to be ready should you need to pay an additional downpayment and an administration fee.
This product is specially created for those who have existing car financing with other banks for at least 6 months. You can apply for Car Refinancing if your current financer has an interest rate of 2.40% or more. The financed period on your existing financer will be deducted from the repayment period of 7 years.
Upon approval, OCBC will pay off your car financing with the other bank and then refinance your vehicle with new terms.
Choosing the car loan that best fits your needs and even wants is not an easy matter. You need to take time and shop around for the best deals, as the right car loan is key to acquiring your dream ride at ease.