Will a car loan help you deal with the usual troubles of everyday life? Yes, indeed. With the current global crisis, buying a car in Singapore may appear to be complicated or impossible for some people, especially if you have to pay it with instant cash. For this reason, starting a car loan is considered the most easy way to get hold of the car you really want. Even other individuals who might have the means to buy a car right there and then still prefer to take out a car loan for convenience or for a wide array of reasons.
There are plenty of banks and finance companies in Singapore that are ready to offer an assortment of car loans which can differ in its rates and interest schemes. If you are a newbie to car loans, all the financial and lengthy requisites involved in obtaining one may seem demanding at the start. But the fact is getting a car loan is easy and trouble free if you know beforehand the appropriate steps to make.
If you wish to know more about the whole process, the following points will facilitate you in organising and obtaining a car loan in Singapore.
This is the most important aspect to consider before getting a car loan. The bank needs to know before conceding you a car loan if you are capable to pay the loan back by means of monthly instalment payments. For this reason, the bank will have to verify and assess your credit history and income. If you have a not so excellent credit history, your car loan may not be accepted or you may be given a higher interest rate for your car loan.
Find out from the bank the upfront payment you are required to pay. In Singapore, it is normally 10% of the total price of the car. All the same, the bank may opt for an elevated percentage. This deposit is necessary as a symbol of your payment dependability. Of course, you can shell out even more if you have the means to pay more than 10%, in so doing your monthly instalment payments would be diminished: an aspect that may prove beneficial to you because this means less in interest that you will pay in the future.
Necessary Car Loan Documents
As your car loan is approved, you will be provided with a list of materials and documents to organise. Essentially, the documents needed are copies of your identification card, driving license and other payment receipts.
Select Your Car Loan Options
As you can see, lots of banks and financial companies are providing car loans in Singapore, so it is better to spend some time to look for the car loan interest rates of each bank in order to avoid unpleasant surprises. Of course, a cutback in interest rates can bring into a lot of savings in the future.
Always remember that under the Hire Purchase Amendment Act 2004, you have the right, as a hirer, to know all about the necessary information concerning your car loan, including the total price of the car, Effective Interest Rate, dates of monthly payments and amount of installments, processing fees and early settlement details. All the terms specified in your car loan are legally binding, so be sure to check and analyse everything to make your car loan a positive experience to go through over the years.
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