Car Loan Calculator — Singapore
Estimate your monthly car-loan installment in SGD using Singapore's typical auto-finance rates, and see the full interest cost. No signup, no account needed.
Enter a car price, a down payment of 0–90%, a rate between 0% and 100%, and a term above zero (up to 50 years) to see results.
Car finance rates in Singapore (2026)
Car loans in Singapore typically run about flat 2.5–4% p.a. (about 4.5–7.5% reducing balance). MAS rules cap the loan at 60% of the car's value (OMV up to S$20k) or 70% above that.
These are reference figures for 2026 - always confirm the current rate and the effective (reducing-balance) APR with the lender before you commit.
Where to get a car loan in Singapore
Commonly used providers include DBS, UOB and Hong Leong Finance. Rates and terms vary by lender, your credit profile, and whether you are buying new or used - it pays to compare at least two or three offers.
Deposit and loan term
Deposit requirements vary by lender. Loan terms run up to about 7 years. A bigger deposit and a shorter term both cut the total interest you pay - use the calculator above to see the trade-off for your own numbers.
Worked example
For every $32,000 financed at 5.24% over 5 years:
- Monthly installment: $607
- Total repaid: $36,444
- Total interest: $4,444
Scale to your financed amount, and remember a bigger deposit and shorter term lower the total interest.
How to pay less interest on your car loan
- Put down a larger deposit - it reduces both the monthly payment and the total interest.
- Pick the shortest term you can comfortably afford; a longer term lowers the monthly cost but raises the total.
- Compare the effective reducing-balance rate, not a headline flat rate - a flat rate looks cheaper than it really is.
- A stronger credit profile usually earns a lower rate, so it is worth checking before you apply.
A named-lender rate check: Hong Leong Finance (2026)
Hong Leong Finance publishes a flat rate of 2.68% p.a. on new-car loans (checked 16 September 2026), which works out to an effective (reducing-balance) rate of about 5.24% p.a. over a 5-year term — Singapore car loans are conventionally quoted flat, not reducing-balance, which is why this matters. UOB's own car-loan page lists 2.78% p.a. for new and used cars up to 10 years old (effective 5.09%-5.27%, 5.24% over 5 years; accessed 15 October 2026), close to Hong Leong Finance's 2.68% flat.
A more realistic example: financing S$60,000 (COE-inclusive pricing pushes Singapore car costs higher) at the 5.24% effective rate over 5 years works out to about S$1,139/month, with total interest of roughly S$8,332.
Always compare the effective rate, not the flat rate, when shopping between Singapore lenders — a low flat rate can look deceptively cheap.
COE and ARF: the two costs that dwarf the loan itself
In Singapore, financing usually covers only a fraction of what a car really costs, because two government charges are layered on before the loan amount is even calculated. The Certificate of Entitlement (COE), administered by the Land Transport Authority (LTA), is a quota licence that must be bid for and won before a car can be registered at all — its price floats with demand and is added on top of the car's Open Market Value (OMV). Then the Additional Registration Fee (ARF) is charged as a percentage of OMV in rising tiers: for cars registered from the February 2023 COE bidding exercise onward, that is 100% on the first S$20,000 of OMV, 140% on the next S$20,000 (up to S$40,000), 190% up to S$60,000, 250% up to S$80,000, and 320% on any OMV above S$80,000, per the LTA's own tax-structure page.
The practical effect: on a car with an OMV of S$50,000, the ARF alone works out to S$20,000 + S$28,000 + S$19,000 = S$67,000, before COE is even added — often making ARF and COE together larger than the car's base price. Because the loan calculator above only estimates repayments on the amount you actually finance, always work out your all-in on-the-road price (OMV + COE + ARF + registration fee + road tax) first, then decide how much of that total to finance versus pay upfront. Because COE premiums move with each bidding exercise and ARF tiers apply cumulatively rather than as a single flat percentage, two buyers financing the same nominal loan amount for similar-looking cars can end up with very different total costs depending purely on when they registered and which OMV bracket their car falls into.
Third-party insurance is compulsory, separate from the loan
Whether or not a car is financed, Singapore law requires every vehicle owner to carry insurance against third-party death or bodily injury before the car can be used on the road, under the Motor Vehicles (Third-Party Risks and Compensation) Act 1960, as confirmed by the General Insurance Association of Singapore. In practice, banks and finance companies financing a car will also require this cover (and usually a fuller comprehensive policy) to be in place and often assigned to them as loss payee for the duration of the loan, so the insurance cost needs to be budgeted alongside the monthly instalment shown above, not folded into it. Because a financed car is a lender's collateral until the loan is repaid, most banks and finance companies go beyond the statutory third-party minimum and require comprehensive cover naming them as loss payee, which is typically a condition of the financing agreement itself rather than a separate choice you can decline while the loan is outstanding.
Frequently Asked Questions
What is the typical car loan rate in Singapore?
As a 2026 reference, car finance in Singapore runs about flat 2.5–4% p.a. (about 4.5–7.5% reducing balance). Your actual rate depends on the lender, your credit profile, and whether the car is new or used.
How much deposit do I need for a car loan in Singapore?
Deposit requirements vary by lender. A larger deposit lowers both your monthly payment and the total interest you pay.
Which lenders offer car loans in Singapore?
Commonly used providers include DBS, UOB and Hong Leong Finance. It pays to compare two or three offers, since rates and terms vary by lender and by your credit profile.
How is the car loan installment calculated?
Using the reducing-balance formula P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1) on the financed amount. Dealers may quote a lower-looking flat rate; convert to the effective rate to compare.
Is car financing regulated in Singapore?
Car loans in Singapore fall under the Monetary Authority of Singapore's (MAS) oversight of licensed banks and finance companies.
What car loan interest rate does Hong Leong Finance offer in Singapore?
Hong Leong Finance publishes a flat rate of 2.68% p.a. on new car loans, which works out to an effective (reducing-balance) rate of about 5.24% p.a. over a 5-year loan term. Rates are indicative and can change without notice, so confirm the current rate on HLF's own site before applying.
Why is my car loan's flat rate so much lower than its effective rate?
Singapore car loans are quoted as a flat rate, meaning interest is calculated on the full original loan amount for the entire term rather than on the shrinking balance you actually owe. A 2.68% flat rate is roughly equivalent to a 5.24% effective annual rate over 5 years, so always compare the effective rate between lenders.
Do rising COE prices affect car loan financing in Singapore?
Yes — since COE (Certificate of Entitlement) premiums are added on top of the car's price, higher COE bids increase the total amount financed, and MAS caps how much banks can lend based on the car's Open Market Value, so a pricier COE often means a larger required down payment.
How much does the Additional Registration Fee (ARF) add to a Singapore car's price?
ARF is charged in rising tiers on the car's Open Market Value (OMV): 100% on the first S$20,000, 140% up to S$40,000, 190% up to S$60,000, 250% up to S$80,000, and 320% above that (for cars registered from the February 2023 COE exercise onward). On a S$50,000 OMV car, ARF alone comes to about S$67,000 - often more than the car's base price - and that is before COE is added.
Is car insurance compulsory in Singapore, on top of the loan?
Yes. The Motor Vehicles (Third-Party Risks and Compensation) Act 1960 requires every vehicle to be insured against third-party death or injury before it can be driven. Lenders financing the car typically also require this (and usually comprehensive cover) as a loan condition, but it is a separate cost from the monthly loan instalment.
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Sources
Rates are compiled from each country's central-bank publications and the typical offerings of its major commercial banks, reviewed for 2026 and subject to change — always confirm the current rate with a lender before deciding. See our methodology and editorial policy for how we source and update this data.
Additional sources for this page
Hong Leong Finance new car loan rates (checked 16 Sept 2026): Hong Leong Finance — New Car Loans. UOB, Car Loan interest rates (accessed 15 October 2026). See our methodology and editorial policy for how we source and update this data.
- Land Transport Authority (LTA) — Vehicle Tax Structure (ARF tiers) (accessed 26 September 2026)
- LTA — Additional Registration Fee (ARF) (accessed 26 September 2026)
- General Insurance Association of Singapore — Motor Insurance FAQ (compulsory third-party cover) (accessed 26 September 2026)