For most Singaporeans looking to buy a car, they tend to require a car loan since they will not be able to provide liquid cash at the point of purchase. So, if you have come looking to understand car loans, you’ve come to the right place.
Documents required: (General guideline – you may need more)
- NRIC
- Proof of income
- Notice of assessment from IRAS
How much can I borrow?
- For cars up to an OMV of $20,000 – down payment of 40% required
- For cars with an OMV of >$20,000 – down payment of 50% required
For example, if a car has an OMV <$20,000 with a selling price of $100,000, you need at least $40,000 in cash for downpayment.
If a car has an OMV > $20,000 with a selling price of $150,000, you need at least $75,000 cash for a downpayment.
It definitely helps to have a clean credit history. This will allow for banks to process your loan easier as they know that you will be able to repay them. Also, if you have other ongoing loans, the bank will be able to easily find out and this will affect your chances of borrowing for sure.