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Understanding Used Car Loans in Singapore
A used car loan is a financial product specifically designed to facilitate the purchase of a second-hand car, making it easier for buyers to finance their car without the full upfront payment. In Singapore, purchasing a pre-owned vehicle can be more affordable than buying a new car due to high taxes and fees such as COE.
Key Aspects of Used Car Loans:
- Interest Rates and Loan Terms:
Used car loans in Singapore come with varying interest rates and repayment terms. The interest rate and loan terms generally depend on the financial institution that you are taking the loan from. Hence, it is important to look for a reputable financial institution that offers competitive rates and reasonable loan terms.
- Loan Quantum:
The amount you can borrow generally depends on the Open Market Value (OMV) of the car and your creditworthiness. Most financial institutions offer financing up to a certain percentage of the vehicle's purchase price or valuation, whichever is lower.
- Repayment Period:
The loan tenure for every used car varies, with maximum periods usually up to 7 years. The tenure often depends on the car's age, with older vehicles qualifying for shorter loan durations.
- Eligibility:
To qualify for a used car loan in Singapore, most financial institutions will look into the borrower's age, income, and credit history requirements. If the borrower has a bad credit score, it may affect their eligibility to qualify for a high loan amount. In the worst-case scenario, the borrower may not even qualify for a used car loan.
We provide the best rates and loan terms for you when you are purchasing a used car from a dealer or private seller. We are the go-to finance company for people who have difficulties in getting their car loans approved.
Together with our car finance experts, we’ll do our best to help you, no matter the circumstances. Talk to us, and let us know more about your challenges and credit history – together, we can make things happen.
Why Tembusu Used Car Loans
Lowest & Exclusive Interest Rates
Direct, No Middleman Fees
Highest Loan Approval Rate
Fast & Fully Guided Process
100% Handling of LTA & Bank
No Additional Charges
How to Apply for Our In-house Used Car Loan?
| Step 1: Receive Expert Consultation |
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Call us at (+65) 6741 2588 or WhatsApp us for a free consultation and receive advice from our specialists regarding used car loans. |
| Step 2: Submit Your Documents |
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Send us the required documents and we will expedite the approval process for your loan. |
| Step 3: Loan Approval |
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Once your used car loan application has been approved, you will be notified by our loan specialist who will explain the loan features and charges. |
| Step 4: Disbursement |
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After you have accepted our offer, we will disburse the loan and work with the seller to transfer ownership of the car to you. |
FAQs on Used Car Loan
Most in-house car loans are generally easier to get approval for high loan quantum even if the borrower has low income or credit problems. The processing time is also much shorter compared to bank car loans. In addition, an in-house loan will not affect your Total Debt Servicing Ratio (TDSR).
Cars with applicable open market value (OMV) exceeding $20,000 will be entitled to a maximum loan value of 60% of the car price. Cars with applicable OMV below $20,000 will be entitled to a maximum loan value of 70% of the car price. OMV refers to the original value of the vehicle depreciated over time. The minimum loan amount is $10,000. The maximum car loan term is capped at 7 years, based on the age of the vehicle.
We offer in-house car loans of up to 100% of the purchase price for companies. These cars are typically registered as private-hire (PHV) or corporate vehicles. Please contact us if you require a high car loan and our loan specialist will advise you accordingly.
Interest rates of our used car loans are adjusted regularly and are subject to change. They also defer based on the loan tenure and your credit profile. Tembusu offers some of the most competitive rates in the market, ensuring that your loan is affordable. Contact us for the most current rates and how we can help you secure a favorable deal.
Yes, we provide loans for cars purchased from both dealers and private sellers. Our team will guide you through the documentation required for each scenario to ensure a smooth financing process.
Once we receive your full set of documents, we will be able to provide an approval within 1 working day.
We will need a signed and filled loan application form, a copy of your vehicle sale agreement, a clear copy of your NRIC (front and back), a 2-year notice of assessment (NOA), the latest 12 months CPF contribution history, 6 months payslip or the latest 3 months bank statement if self-employed. Please contact us for a copy of the used car loan application form.
Find out more about our used car loans
We will answer any questions you have on used car loan in Singapore.
