Singapore is one of the most expensive countries in the world to own a car. It comes to no surprise that over 95% of the 1000 deals that we have successfully transacted requires a loan. In this article, Otua Auto explores and breaks down the different types of loan packages that are available to you as a consumer.

Bank loans, we almost always encourage our car buyers to apply for a bank loan compared to the other options. The reason is simple – Bank loans are the cheapest loan option available to buyers, so you can get the best price for your car. They are also the easiest to understand, without all the convoluted terms and conditions that are often overlooked and very much unfair to the average consumer.

The only disadvantage to bank loans is that they tend to be strict with their applications as they have to adhere strictly to any MAS guidelines that are imposed on them.


Cheapest financing option
Loan applications tend to be faster
Easy to understand
Easy and fast loan settlement


Strict requirements

In-house financing

Despite their name, in-house financing actually refers to 3rd party finance companies/institutions. These loans tend to have much higher interest rates that start from 3.XX% and upwards of 5%. They are often preferred for their lenient application process.

One of the core benefits of in-house financing is that it does not reflect on your total debt servicing ratios. So for car buyers who are looking to purchase a house in the near future or are looking to apply for business loans, in-house financing could be the ideal choice.

Do take note that the terms and conditions for inhouse financing are often harsh and brutal. With expensive early settlement fees and charges to exorbitant default penalties, it should be well noted that your payments are prompt and timely to avoid a painful bill at the end of the month.

By Haadi