OCBC Car Loan

OCBC Car Loan Review 2021: Best Choice for New Cars

OCBC provides loans that borrowers can use for buying new and used vehicles. Its 2.28% p.a. flat rate makes it the cheapest car loan for new cars in Singapore and a highly competitive choice over other financial products for used cars. OCBC also provides a cheaper financing option in the form of the OCBC Eco-Care Car Loan with a promotional rate of 1.68% for the purchase of an electric car.

Key Features

  • An interest rate of 2.28%
  • Can be used for both new and old cars
  • OCBC car loans can have a tenure as long as 7 years
  • The maximum loan amount is 60% to 70% of the vehicle’s purchase price or open market valuation price, whichever is lower.
  • Eco-Care Car Loan option for less interest

 

OCBC Car Loan Interest Rates

If you get a principal amount of S$40,000, these are the estimated payments you need to know.

Loan Tenure Interest Rate Monthly Instalment Total Loan Cost
1 year 2.28% S$3,409.33 S$912.00
2 years 2.28% S$1,742.67 S$1,824.00
3 years 2.28% S$1,187.11 S$2,736.00
4 years 2.28% S$909.33 S$3,648.00
5 years 2.28% S$742.67 S$4,560.00
6 years 2.28% S$631.56 S$5,472.00
7 years 2.28% S$552.19 S$6,384.00

 

The Pros and Cons of an OCBC Car Loan

Pros

  • Lowest Interest Loan for New Cars. Compared to loans from other banks, OCBC’s car loan wins out with the lowest rates on new cars. Click here to find out the best car loan interest rates in Singapore here. 
  • Very Competitive Rates for Old Cars. The OCBC loan is also a good option for buying an older car model, despite losing out on financial products like that of DBS.
  • Flat Rates. Like most car loans, Maybank car loans charge a flat interest, which means you make consistent monthly payments based on your principal.
  • GIRO payments viable. You can pay your monthly instalments through your bank account with GIRO. Fees may or may not apply.

Cons

  • Higher Minimum Income Requirement. Unlike other loans, OCBC’s loan requires S$15,000 monthly income from the borrower.
  • Limited use. You can’t use the loan to finance COE cars, or private hire vehicles, or commercial vehicle.

 

How OCBC Car Loans Compare to Other Bank Car Loans

Bank Car Loan Interest Rate Minimum Annual Income Requirement Minimum Loan Amount Maximum Loan Amount Loan Tenure Range Monthly Instalments
OCBC Car Loan 2.28% not listed S$15,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$742.67
Maybank Car Loan 2.78% S$1,500 S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$759.33
DBS New Car Loan 2.78% S$2,000 S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$759.33
DBS Used Car Loan 1.99% S$2,000 S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$733.00
Hong Leong Finance New Car Loan 2.48% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$749.33
Hong Leong Finance Car Loan 2.78% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$759.33
UOB New Car Loan 2.68% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$756.00
UOB Used Car Loan 2.78% not listed S$10,000 60% or 70% of the car’s price or market valuation, depending on which is lower 1 to 7 yrs S$759.33

 

Monthly payment amounts are based on a S$40,000 quantum and a tenure of 5 years. You may use an online car loan calculator to compute other amounts.

Cars Parked at Roadside

What We Think of OCBC Car Loans

Compared to other offers from other financial institutions, OCBC’s car financing provides a competitive option whether you’re buying a new or used car. It does, however, lock out lower-income borrowers because of the higher principal requirement. You can check out the best car loans in Singapore here.

How to Apply

Application for OCBC car financing is simple, even letting you do it on their site.

Eligibility

  • Anyone above 21 years old
  • For Singaporeans, Singapore PR, and foreigners

Requirements

OCBC’s site currently does not list its specific requirements, but it will likely include identification and proof of your finances. Some examples of these documents may be:

  • Photocopied identification card
  • Computerised payslip
  • Income tax notice of assessment
  • Latest 6 months’ CPF contribution
  • Work permit for foreigners
  • Vehicle Sales Agreement/Hire Purchase Agreement

Fees

  • Late payment fee: S$80 (for each payment date missed)
  • Full settlement penalty: 1% on the outstanding amount
  • Interest rebate clawback: 20% on interest rebate (rule 78 computation)

 

FAQs

1. How much can I borrow from OCBC for a car?

Like with all car financing options, you can get either 70% or 60% of the car’s price, which will depend largely on how the listed price of the vehicle compares to its open market value.

2. Do I get a lower Interest Rate with OCBC Eco-Care Car Loan?

Yes, it is the cheapest option for financing a vehicle at 1.68%, but it does limit you to purchasing an electric car.

3. Can I use a personal loan to cover the car’s purchase price?

Yes, you can use a personal loan to pay for a vehicle purchase. It’s a viable option to consider due to its flexibility.

 

Our Final Thoughts

  • OCBC’s offer wins out compared to other banks because of its low rates
  • Lower-income borrowers may find it more difficult to borrow from OCBC
  • Look at other financing options before buying a car, like personal loans.
  • The best advice is to consider the state of your finances when settling for a financing option.

 Check out the services of Instant Loan if you have difficulty picking a borrowing option. Through our site, we can review your financial situation and provide you with a curated list of the best offers in Singapore from the top licensed moneylenders.

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