Car Loan

Have wheels, will travel. Enjoy convenience and avoid squeezing with the crowd with your own car.

What Is A Car Loan?

Getting a car in Singapore means that you will no longer have to squeeze with people in the mrt during peak hours or run for the bus. Getting a car means that you gain independence, in that you can travel at your own convenience and do not have to rely on other people for your travel needs. With independence comes convenience.

Other benefits of owning a car is that you get to save time and personalize your own schedule. Having a car opens up your world to many more opportunities since you can travel over long distances and complete more tasks in a shorter amount of time.

In order to enjoy the above benefits, you must be prepared to foot the cost of owning a car. Given that Singapore is one of the most expensive countries to live in, owning a car also comes with high costs.

A car loan is able to help you with the costs of getting a car in Singapore.

With low interest rates and flexible loan repayment schedules, a car loan can help you get a car without straining your finances. Instead of eating into your savings or scrimping on every meal, you can spread out the car payment with a car loan.

1AP Capital has a large customer base in Singapore with many years of experience. With our skills and expertise, we have helped thousands of customers financially. Also, our loan application can be done online. Apply with us today, we promise no obligations.

Things To Take Note Of Before Getting A Car In Singapore

Before buying a car, you need to familiarize yourself with the costs that are associated with buying the car and maintaining it. Below are details about these two cost-related aspects.

1. The cost of owning a car in Singapore

Various factors constitute the cost of buying a car in Singapore. These factors include the open market value of the car, registration fees, Certificate of Entitlement charges (COE), Additional Registration Fee, Vehicular Emissions Scheme charges, insurance and road tax, and car dealer commission. They sound like a lot of factors and seem pretty confusing. Not to worry, we have included a breakdown of each below.

Open Market Value (OMV) of the car: OMV is calculated by the Singapore Customs during the time that the car enters the country. This value comprises the car’s purchase price, shipping charges and other fees for delivering the car to Singapore.

Registration fees: A fee of $220 is charged on the car during registration.

Certificate of Entitlement (COE) charges: A person buying a car in Singapore is required to have a COE, which entitles one to registering, owning and using a car in Singapore. The COE fee varies between S$29,902 and S$37,000 depending on the type of car.

Additional Registration Fee (ARF): ARF is imposed once the car is registered. It is calculated as a percentage of the OMV of the car. Currently, any car that has an OMV value up to $20000 is subjected to a 100% OMV. Automobiles whose OMV exceeds $20000 are taxed differently on the basis of incremental OMV. Below is the ARF calculations for cars registered from March 2013 onwards.

Vehicular Emissions Scheme (VES) charges: VES came into effect in January 2018 and is imposed as either a surcharge or a rebate on all new cars that are registered. VES is aimed at encouraging buyers to purchase environment-friendly vehicles. Depending on the band the car falls in, owners may be entitled to rebates or surcharges.

Insurance and road tax: Before you drive a car that you have purchased, it must have a valid insurance cover and a valid road tax. The cost of insuring a car that has just been purchased is approximately $1500 per year.

Car dealer’s commission: If you buy a car from a merchant, you will have to pay the merchant’s gross profit cost. This cost includes overhead costs, commissions, and warranties.

2. The cost of maintaining the car

The cost of having a car does not end at buying the car and paying for the compulsory requirements such an insurance and road tax. There are several additional expenses that you have to pay for over the period that you use the car. The additional expenses include insurance and road tax, which you have to pay for on a yearly basis, continuously. The various costs of maintaining a car in Singapore are detailed below.

Insurance and road tax: Insurance and road tax are not one-time costs. In addition to the amount that you are required to pay for insurance and road tax before you use your new car for the first time, you have to submit additional payments each year. A 1600cc car will cost you around S$740 a year in road tax. Additionally, you have to part with S$1500 each year for car insurance.

Electronic Road Pricing (ERP) charges, parking fees and fuel costs: Everyone in Singapore is probably familiar with the ERP, the tall blue and white gantry that draws money every time you drive through it. When you buy a car in Singapore, you are expected to use it regularly, especially when you drive into town. On average, drivers pay an ERP fee of $20 per month.

For residents’ first parking lot, season parking at HDB costs $80 per month for surface carparks and $110 per month for sheltered carparks. For residents’ second car or for non-residents, season parking at HDB costs $90 and $120 per month at non-sheltered and sheltered carparks respectively. Condos and private properties may have their own set of parking charges.

Driving your car around will also incur other parking fees and on average, drivers in Singapore pay a parking fee of $80 per month. As regards fuel costs, you will require about S$2600 per year for fuel.

Maintenance/servicing: The cost of servicing a car is not quite straightforward since it depends on how often you use the car and the environment in which you use the vehicle. However, you may require approximately S$500 or more per year to service a small car.

Why A Car Loan May Be Necessary

As noted above, owning a car in Singapore can be quite expensive given the charges that you have to pay in addition to the cost of the car. The same applies to the cost of maintaining or servicing the car. The high cost may prohibit you from buying a car.

However, if you are employed or that you have a job that requires travelling, getting a car becomes a necessity.

Getting a loan doesn’t sound like a fantastic idea. It’s like a liability but depending on how the car owner uses the car, it can be seen as an asset instead.

A car loan can help you get the car you’ve always wanted as long as you can pay for its cost in monthly installments. This means that when you take a car loan, you will have your preferred car and at the same time avoid the burden of having to make a lump sum payment for the vehicle. Making the full payment for a car is nearly impossible for average Singaporeans. Getting a car loan just means that you get to buy a car but spread out your payment instead.

In other words, you should be able to comfortably settle your car loan over the stated period without compromising your ability to continue meeting other needs and saving and investing.

1AP Capital offers easy and convenient online loan application for both Singaporeans and PRs. If you are looking for a car loan of have any questions about it, feel free to contact our friendly consultants today! Alternatively, you can fill in our enquiry form online.

Flexible Repayment Scheme

Flexible Repayment Scheme

Our team will look at your income and plan a repayment plan accordingly. Alternate solutions available.

On-the-spot Disbursement

On-the-spot Disbursement

We are able to pass you your cash right away once your loan has been approved!

Higher Borrowing Limits

Higher Borrowing Limits

1AP Capital is able to offer larger loans due to our extensive experience.

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Complete Your Loan
Application In 3 Steps

Fill up an application form

It takes an estimated 5 minutes to complete.

Receive application result and make appointment

Our loan officer will contact you within 24 hour upon form submission.

Sign agreement and get your cash

Confirm your loan contract and get your money without delay.

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Frequently Asked Questions

We provide personal loans, education loans, credit card consolidation loans, car loans, renovation loans, business loans and more.

You can choose to repay your loan installments through ATM Transfers, ATM Deposits, Bank Deposits, or Internet Transfer to any of our local bank accounts. Alternatively, you can also do your loan repayments in cash or through cheques at our office.

We do not need a guarantor in most cases.

Yes, of course! You will always be welcomed at 1AP Capital.


Our experienced loan consultants will take pleasure in providing you with a structured loan plan based on your financial capacity. It is important that you provide an accurate account of your financial status so that we can assist you in the best possible way.

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