If you are planning to buy a car, then choosing the right interest rate is the first task you have to accomplish. This depends on the kind of car you wish to purchase. To decide on the rate of interest, you have to get the right financing plan. To avail the loan, an individual has to meet specific eligibility criteria of a financial institution. The individual has to be above the age of 21. The loan tenure will last up to 7 years, depending on the terms and conditions of the institution.
What Is The Loan Amount You Can Avail In Singapore?
In Singapore, you can take the loan up to 70% on the vehicle’s total value. You can avail of 70% of the loan amount if the vehicle’s value is $20,000 or less. If the vehicle’s value is about $20,000, then the amount you can avail from the financial institution is 60% of the vehicle’s total cost. Besides this, there are other criteria for the income statement of an individual. You can spend up to 60% of your income on different types of loans. Keeping this in mind, the credit is granted to the client.
Current Prevailing Interest Rate On Car Loan In Singapore
Car loan interest rate varies from country to country, institution to institution. Financial institutions like Capitall or others charge a different rate of interest depending on their policy. The rate of interest also depends on the kind of car you are purchasing. This can either be a new car or an old car.
- The rate of interest for a new car varies between 1.99% – 2.78% p.a.
- The rate of interest for a used car varies between 2.78% – 2.98% p.a.
How Much Do You Need To Invest To Buy A Car In Singapore?
Buying an car or a vehicle in Singapore is quite expensive. The rates of vehicles are high due to the high standard of living. Besides the original cost, other costs need to be invested. After purchasing the car, you have to maintain it with regular services. You will spoil the condition of the vehicle if it is not serviced in a timely period. Servicing the car is another additional expense which the owner incurs after purchasing it.
The purchasing cost is the amount you incur at the time of buying the vehicle. This involves a different type of expense that needs to be invested at the initial stage. Below are the costs you will incur at the time of purchase of a vehicle.
- Purchase Cost: This is the initial cost involved while purchasing the car. The investment is enormous and can either be one time or be divided into installments. This is a huge one-time investment made by the purchaser.
- Interest Rate: If you are opting for a loan, the additional expense will be the interest you’ll pay to the financial institution for granting you a loan. Nobody in the globe will give you funds without their own benefit. Thus if you have decided to opt for a loan, then paying the rate of interest is a must you have to do.
- Number Plate: This cost is incurred at the time of getting the license of a car. The expense you incur in this stage is the expense on plate number. This step is a must, and you cannot avoid this expense.
Cost Of Maintenance
This is the cost the owner will incur after the purchase of the vehicle. Maintaining the car to use it for a longer tenure of time is very important to sustain one. The maintenance cost of the vehicle is divided into various types:
- Petrol: To run vehicle petrol is the primary necessity for it. Your vehicle will not run without fuel. The principal investment after purchasing the car is made in buying fuel for your vehicle. On average, you have to spend S$1500+ for petrol annually.
- Road Tax: It is compulsory to pay road tax since you are using government facilities. The road tax can either be paid annually or half-yearly. The calculation of the road tax depends on the engine capacity of your automobile. To estimate the road tax, you can use online calculators for calculation. On average, you have to pay 500 + dollars annually on road taxes.
- Parking: You cannot park your vehicle at any place you wish to. If you park your vehicle in a no-parking area, you will either lose your car or have to pay a hefty penalty for it. Thus parking in an allotted area is a must. For parking, different places charge different charges. To make it simple, you have to spend 1200 + dollars on parking charges annually.
- Insurance: Insurance has been made compulsory in most of the countries of the globe. Without pain, the insurance a driver is not allowed to drive. A lot of people commit the offense of not paying the coverage, which in turn lands them in the problem. The cops keep a unique eye on the youngsters. This is due to their reckless behavior on the road, which can lead to accidents. In Singapore, the elderly have to pay a lesser amount of insurance because of their experience. In comparison, the young generation is charged with a higher amount of coverage due to their amateur behavior. On average, you have to spend 1500 + dollars annually on insurance.
- Maintenance: After running the vehicle for more than 10000 kilometers, it becomes necessary for the owner to get the car serviced. The service is either done half-yearly or annually, depending on the number of distance covered. You cannot expect your vehicle to stay with you for a more extended period of time if you are not giving it an excellent service. The more you take care of the car, the more it runs smoothly and stays longer. Servicing is not just done for smoothening but also to increase the lifespan of the vehicle.