Last updated 7 August 2026. This page was reviewed on that date. Prices, rates and opening hours change often in Singapore — confirm anything that matters directly with the business before you travel or spend.
Quick answer: Car loans in Singapore are MAS-regulated: max 70% loan-to-value if the car’s Open Market Value (OMV) is S$20,000 or less, 60% if higher, with a 7-year maximum tenure. Rates typically run 2.48%–3.28% p.a. for new cars — always check the EIR, not the flat rate. COE premiums now run around S$120,000–S$130,000+ (Cat A/B), so factor that into your total cost before financing.
For insights into education loan choices under the new HESL system, turn to the Education Loan guide.
At the kopitiam, an uncle sets down his kopi-o and shakes his head at the screen: COE above 120k, a number his first car cost entire. A younger buyer nearby checks a bank’s EIR calculator. The ritual has moved from form-stamping to tapping, yet the old rule holds — understand your car loan before you even browse the lot.
Planning to finance a car in Singapore? This guide covers the MAS rules that shape every car loan here, realistic costs including today’s COE premiums, and how to compare offers properly.
The MAS rules that shape every car loan
Car loans in Singapore are regulated by MAS to prevent over-borrowing:
Standing in the showroom, you realise MAS rules aren’t just fine print—they quietly decide which cars you even look at. The OMV threshold splits the room in two, and suddenly that conti model needs a fatter downpayment. It’s not about what you can afford monthly; it’s about the lump sum you must chope upfront. The salesperson doesn’t say it, but you feel the kiasu math running in your head.
- Loan-to-Value (LTV) cap: up to 70% of the car’s price if its Open Market Value (OMV) is S$20,000 or less; up to 60% if the OMV is higher. This means a minimum 30% or 40% downpayment respectively — you cannot finance the full price.
- Maximum tenure: 7 years (84 months).
- Scope: these rules apply to loans from banks and finance companies. Dealer-arranged leasing or lease-to-own schemes not structured as a standard hire-purchase loan aren’t covered by the same MAS rules — read the terms carefully, as they can effectively allow higher leverage.
These rules arrived after a time of easy credit, when loan tenures stretched past a decade and down payments were negligible. Today they anchor a buyer’s reality: a car remains a considered luxury, not impulse. For the Singaporean remembering handshake deals, the paper trail feels heavier — but it protects the same instinct for long-term prudence.
The real cost: COE, rates, and EIR
Car ownership costs in Singapore are dominated by the Certificate of Entitlement (COE) — currently running roughly S$120,000–S$130,000+ for Category A (up to 1,600cc/130bhp) and Category B (above that), and prices move with each bidding exercise. This is on top of the vehicle’s own price, so budget for COE as a major, separately-fluctuating cost before you even get to financing.
You sit with a kopi, staring at a loan quote, and the COE figure looms larger than the car’s own price tag. It’s a number that moves with each bidding exercise, so timing feels like a zi char order that might come out different next week. The effective interest rate isn’t shouted from the banner—you have to ask, then watch the finance person’s face as they explain why the flat rate isn’t the whole story.
Bank car loan rates typically run 2.48%–3.28% p.a. for new cars (flat rate), slightly higher for used cars. As always, the flat rate isn’t the full picture — check the EIR (Effective Interest Rate), which includes fees, for the true cost of borrowing.
COE fluctuations once lived in newspaper columns and kopitiam talk; now they refresh on a phone screen every bidding cycle. The sticker rate a bank advertises still masks an effective interest rate that grows with the loan term. Seasoned buyers know to run the EIR number first, letting that quiet figure guide the showroom enthusiasm.
When a personal loan between app and passbook calls to you, see the Personal Loan guide.
Types of car loans
- New car loans: generally the lowest rates, full LTV options as above.
- Used car loans: for vehicles typically under 10 years old, usually at a slightly higher rate than new-car loans.
- COE renewal loans: to extend a car’s life beyond 10 years by renewing the COE, typically for a further 5 or 10 years.
- Green/EV car loans: some banks offer preferential rates or rebates for electric and hybrid vehicles as part of Singapore’s push toward cleaner transport — worth checking if you’re buying an EV, but confirm the actual current rate directly with the bank rather than relying on a headline promotional figure.
Hire purchase once meant sitting across from a neighbourhood banker who knew your father’s name. Today the same loan structure exists alongside direct bank term loans and balance transfers, each suited to a different profile. The key remains matching the facility to how long you intend to keep the car, a decision older drivers made over teh tarik.
At the desk, you notice the used-car loan rate sheet has a different colour, a slightly higher number that nobody highlights. The COE renewal option feels like a secret handshake—not every lender brings it up, but for a car you already trust, it opens a door you didn’t know was there. Green loans come with a quiet enthusiasm from younger staff, a sense they’re selling something fresher than just metal and paper.
Eligibility and applying
- Generally aged 21–65; Singaporeans/PRs and foreigners with a valid work pass can apply, though foreigners typically face a higher minimum income requirement and may need a local guarantor.
- Documents typically needed: NRIC/passport, income proof (payslips or Notice of Assessment), CPF statements, and the vehicle sales agreement.
- Factor the loan into your wider debt picture: car loan repayments count toward the 55% Total Debt Servicing Ratio (TDSR) cap that MAS applies to property lending, so a large car loan can directly constrain a future home loan.
Don’t overlook ongoing costs beyond the loan itself: road tax and insurance both add meaningfully to your annual outlay and should be budgeted alongside the monthly instalment, not as an afterthought. If a dedicated car loan doesn’t fit your situation, a general personal loan is a flexible alternative, though usually at a higher rate.
The loan officer glances at your work pass, then pulls out a checklist that’s longer than the one for locals. You overhear someone at the next cubicle being asked for a guarantor—their voice drops, and suddenly it’s a family conversation. The stack of documents feels very Singapore: NRIC, CPF, payslips, all proof that you exist in the system before a car can exist in your carpark.
Before digital applications, a payslip and a solemn nod from the loans officer sealed the deal. Now the income threshold, the credit check, and the tenure cap translate that same ritual into a few clicks. Setting aside a line for road tax and insurance early — as the old hands always did — keeps the monthly commitment honest from day one.
FAQs about car loans in Singapore
How much can I borrow for a car loan in Singapore?
Up to 70% of the car’s price if its OMV is S$20,000 or less, or 60% if higher — this is a MAS-set cap, so you’ll need a 30% or 40% downpayment respectively regardless of lender.
Hanging around after the test drive, you hear the same questions echo across the showroom—how much down, what’s inside the price. The answers come fast, almost rehearsed, but the real texture is in the pauses: the moment a buyer realises the COE is separate, or that the monthly figure they’d banked on isn’t possible under the cap. It’s a kopitiam talk condensed into a financing form.
What’s included in the price of a car in Singapore besides the loan?
The Certificate of Entitlement (COE) is the biggest additional cost — currently around S$120,000–S$130,000+ depending on category and bidding results — plus registration fees, road tax, and insurance.
Can foreigners get car loans in Singapore?
Yes, with a valid work pass, though foreigners typically face a higher minimum income requirement than Singaporeans/PRs and may need a local guarantor.
What documents do I need to apply for a car loan?
NRIC or passport, income proof (payslips or Notice of Assessment), CPF statements, and the vehicle sales agreement.
Last updated July 2026. LTV rules, tenure caps, and COE figures checked against MAS’s own motor vehicle loan explainer and current COE bidding results on 22 July 2026 — COE prices move with each bidding exercise, so check the latest results before budgeting.
Disclaimer: This article is for general information only and is not financial advice. Compiled from publicly available sources; while we aim for accuracy, we do not guarantee completeness. Confirm all current rates and COE prices directly with your bank or the LTA before making decisions. Let us know if you spot anything that needs correcting.
About the figures on this page. Rates, bonuses and qualifying spends were checked against the issuers’ own sites on 5 August 2026. Singapore banks revise these frequently — several cut their headline savings rates more than once in 2026 alone — so treat every number here as correct on that date rather than a standing promise, and confirm on the issuer’s page before you apply or move money.
