Finally, buying your first ride? Apply with POSB car loan. It is one of the best choices to get your car at home.
Unless you are born with a silver spoon in your mouth, you will need a car loan for your set of wheels.
With too many car loans offered in the city-state, how will you choose the one you’ll need and want?
Before you get too excited, here are some things you need to consider when getting a car loan.
Of course, we all know that the car loan will not cover 100% of your car’s value. You still need some cash to pay as your downpayment. When buying a car, you need to ensure that you have enough savings to cover the downpayment.
With a POSB car loan, the downpayment will depend on the vehicle’s purchase price. For example, if the car’s open market value is less than $20,000, then POSB will only cover up to 70% of the purchase price. But, if you are eyeing a car with an open market value higher than $20,000, then POSB will only lend up to 60% of its purchase price.
Is your savings less than the required downpayment? Then, you have to wait a bit more until you have saved enough to buy the car. Or you have to find another car loan.
With the revised policies on the loan term, you’ll be happy to know you can now stretch up that car loans up to seven (7) years. POSB car loan tenure from one (1) year to seven (7) years.
It is pretty tempting that you’ll get the most extended term. But, you need to make a wise decision. A car loan is a serious financial responsibility. In addition, the longer-term you choose, the longer you have to pay for it. So, naturally, you’ll be paying more the longer term you have.
Car loans interest rates differ. However, this is not the only thing you must consider. Most Singaporeans compare loans based on interest rates.
The interest rate is 2.18% p.a. for car loans signed up online. However, this promotion is only until 31 May 2017. Then, the interest rate will go back to 2.78% p.a. without the promotional offer.
There are car loans that offer deferred payments for six months. For example, you can have it interest-free for the first six months with a POSB car loan. However, it only applies if you choose a loan tenure longer than two years. After the initial six months, you will have a charge with an interest rate of 2.18% p.a.
Loan calculators are helpful for loan applicants. It gives them an idea of how much they can borrow. Also, they can see how much they have to pay every month. This way, the borrowers can know if they can handle the loan repayments without sacrificing their needs.
POSB car loan has two types of loan calculators. One car loan calculator is to know the maximum amount you can borrow. It gives you an idea of how much cash you have to prepare as a downpayment. Also, if the loan amount is lower than you need, you can consider other loans.
The other car loan calculator will give you how much you need to pay as your monthly instalments. With this, you can easily know if you can handle the estimated monthly repayments.
POSB, just like most banks, offer car loans to both new and old clients. But while it is a choice for some people you might know, will this option be the right one for you?
Choosing the best car loan is not an easy task. You need to consider many things. But, do not lose focus on the car loan’s purpose.
Car loans help you purchase a vehicle at ease through monthly instalments. However, you have to make sure that you can handle your repayments while juggling your other financial responsibilities. While shopping for a car could be fun, looking for the best car loan is tedious. However, they are both essential.