Hong Leong Finance offers one of the most affordable car loans for new cars, but its used car loan rates are relatively expensive.
Pro: Hong Leong Finance car loan is among the most affordable car loans for new cars.
Con: Its used car loan rates are less competitive.
Features Hong Leong Finance Car Loan
Through Hong Leong Finance Car Loan, it’s guaranteed that you can ease your mind with affordable instalments because financing can go nearly up 60% to 70%. It also offers flexibility in repayment periods which could run up to seven years worth of tenure. Moreover, clients can enjoy fixed rate protection from a hike with a 2.48% p.a. interest flat in advance.
- Up to 70% financing
- Up to 7 years tenure
- 2.48% p.a.
Understanding Car Loans
Getting a car is almost like buying a property– which easily becomes one of the most significant purchases one will make. While there are people making in-depth research about the vehicle they want, some may take some time looking for financial deals that can help them to finally acquire one. A car loan is definitely something they can consider.
Car loans are secured against what one would want to purchase, making the vehicle as collateral for the loan. It means that if you default on your repayments, the lender can seize the auto. The loan is paid off in fixed instalments throughout the loan. Much like a mortgage, the lender retains ownership over the asset until you make the final payment.
Usually, car loans have lower interest rates. It is also easier to obtain even with a mediocre credit history making it the convenient sudden finance solution. However, with auto loans, you won’t have the title to the car until the final repayment is settled. Normally, an upfront deposit would be required so the deal can be secured.
What Makes Hong Leong Car Loans Attractive?
Hong Leong Finance Car Loan is deemed to be one of the cheapest new car loan one could get in Singapore. Its package is inexpensive than what others can provide.
Total Cost of Hong Leong Finance's new car loans
| Period (number of years) | Interest Rates (% p.a.) | Effective Rate (% p.a.) |
| 1 | 2.48 | 5.38 |
| 2 | 2.48 | 5.11 |
| 3 | 2.48 | 5.00 |
| 4 | 2.48 | 4.92 |
| 5 | 2.48 | 4.86 |
| 6 | 2.48 | 4.82 |
| 7 | 2.48 | 4.77 |
Total Cost of Hong Leong Finance's used car loans
| Period (number of years) | Interest Rates (% p.a.) | Effective Rate (% p.a.) |
| 1 | 2.78 | 6.03 |
| 2 | 2.78 | 5.72 |
| 3 | 2.78 | 5.59 |
| 4 | 2.78 | 5.50 |
| 5 | 2.78 | 5.43 |
| 6 | 2.78 | 5.37 |
| 7 | 2.78 | 5.32 |
How Does Hong Leong Compare With Other Banking Giants?
Who Can Apply?
All Singaporeans, Singapore PRs and foreigners in Singapore who are at least 21 years old are eligible for car loans from Hong Leong Finance. It offers used car loans for the purchase of vehicles that are 1 to 10 years old. Additionally, it proposes the maximum car loan principals allowed by MAS at nearly up 60% or 70% of the vehicle’s value.
How to Apply?
As hoped for most applications, availing for a Hong Leong Finance Car Loan is just trimmed down to two easy steps.
- Apply by calling, requesting an online application or visiting a branch.
- Borrowers will be required to submit an application form, as well as documents which are proof of the applicant’s identity, income, employment and car purchase.
Listed below are the required documents a borrower must provide to Hong Leong Finance:
- A photocopy of NRIC/Passport
- A computerized payslip
- CPF Statement of Account
- Your latest Income Tax Notice of Assessment
- Details of existing financial commitments: housing loan, personal loan, credit cards
- Transfer of Vehicle Ownership (if necessary)
Remember that car loans could be a means to fulfil a need for a car, even if you do not have the cash on hand to pay for it. With a car loan, the bank, lender or car dealer will aid you in paying for the cost of your most-awaited purchase, while you pay off the loan in monthly instalments with interest over the specified loan tenure.
