Most people would include a car as one of the assets they want to have. After all, having a vehicle offers a lot of benefits. You will not need to join the rush in public transportation every day. A luxury car is also a statement to the business world.
However, it is not a small feat to own a car. Even second-hand cars do not sell for a low price in Singapore. Thus, you might need the help of finance companies in Singapore to drive home your dream car.
How Finance Companies Can Help You Get Your Dream Car
Finance companies often offer car financing in Singapore for those who wish to purchase a vehicle but cannot afford a one-time payment, aka most of us. Finance companies will give you instalment credit to help you pay for the vehicle. A portion of the car financing amount may be required as a down payment; the balance must be paid over the loan term by making recurring monthly instalments.
Like with any loan, you will be charged interest as well as additional costs for processing and issuing the car financing, which is how finance companies make their money. Since the car itself serves as collateral for the loan, the finance companies have the legal authority to seize your vehicle if you are unable to make your payments. You can either get private car financing or a commercial vehicle loan in Singapore.
Personal Car Loan vs Commercial Vehicle Loan
The difference between a personal car loan and a commercial vehicle loan is that the former is used for vehicles that are intended for private use. It can be brand new or used car loans in Singapore. Meanwhile, a commercial vehicle loan is used to fund a vehicle that will be used for business purposes such as a truck, a commercial van or a passenger bus.
It is best to know which of these loans will suit your requirements best as they come for different prices and conditions.
Where Can You Get Car Financing in Singapore?
A variety of finance companies offer auto loans. Car financing is typically offered by banks and finance companies. You can seek preapproval for a loan from your bank if you have a general estimate of how much the vehicle you desire will cost. You’ll receive a notice confirming the loan amount and interest rate. Just be aware that when you buy the car and the bank completes a thorough credit check to determine your loan acceptance, interest rates may fluctuate slightly.
The car dealer itself is another option for financing. Dealerships may make financing arrangements for you with finance companies they partner with. Since dealerships typically factor in some profit for themselves, this may cost a little more than applying for car financing on your own. Additionally, you can locate online finance companies that can match you with the finest brand-new or used car loans for your requirements.
Do you need car financing to cover your car purchase in the future? Visit Swee Seng Credit to learn about our solutions today.
Celina Lawn
