Top 4 Car Financing Options in Singapore
In Singapore, buying a car isn’t just a milestone decision—it’s also an incredibly expensive one. With the sky-high costs of owning a car in Singapore, picking the right car financing option can make all the difference in managing your budget while securing the vehicle of your dreams. Below, we break down the best options in Singapore to help you find the right fit for you.
1. Bank Loans
Bank loans are the go-to car financing choice for many Singaporeans. They allow you to borrow up to 60–70% of your car’s Open Market Value (OMV), but at the cost of a larger down payment upfront. The repayment terms are also fairly flexible, often spanning up to seven years. Bank loans are an excellent choice for those with good credit scores who can comfortably manage a larger deposit.
However, the approval process may take longer, and stringent eligibility criteria can be a hurdle for some. Additionally, you should also do thorough research and compare different interest rates and terms across the different banks. This will help you secure the most competitive rates and manageable repayment terms.
2. Hire Purchase
Hire purchase is another popular car financing option, especially for those who plan to keep their car long-term. With this method, you make a higher down payment, and the remaining balance is divided into installments over a fixed period. The car becomes legally yours once all payments are completed. Additionally, there are no big balloon payments to worry about at the end of the term, as the costs are evenly distributed.
That being said, buyers should note that hire purchase agreements tend to come with higher interest rates compared to bank loans.
3. Car Leasing

If you prefer flexibility over ownership, consider leasing rather than buying a car. This allows you to drive a brand-new car for a fixed term (usually 2–5 years) by paying a rental fee every month. Unlike other car loan options in Singapore, leasing usually comes with lower monthly payments. Plus, maintenance and insurance are often included in the lease agreement, making it a hassle-free experience.
Do note that at the end of the lease, you’ll either have to return the car or negotiate a purchase option with the dealership, which often comes at a higher cost. Moreover, some leases may come with mileage restrictions, where going over the limit can incur additional charges.
4. In-house Financing
Many car dealerships and parallel importers in Singapore offer in-house car financing to make the purchasing process more convenient for their customers. This option greatly simplifies the process by cutting out the middleman and is particularly beneficial for buyers who may not meet strict bank loan requirements. Furthermore, in-house financing also offers the added benefits of less paperwork and faster approval times overall. Of course, this convenience comes at a cost, as many dealerships will charge interest rates that exceed those of bank loans.
Get the Best Car Deals with Venture Cars
When it comes to car financing in Singapore, there’s no one-size-fits-all solution. Whether you’re interested in a bank loan or leasing a car, it’s important to weigh the pros and cons based on your financial situation, lifestyle, and long-term goals.
At Venture Cars, we understand that finding the right financing option can be complex. That’s why we offer a range of flexible financial packages customisable to your needs, making it easy to find the perfect car without breaking the bank.
Contact us today to learn more.