Singapore Car Loan Calculator

The MAS sets maximum Loan-to-Value (LTV) ratios based on the vehicle's Open Market Value (OMV). Vehicles with OMV ≤ SGD 20,000: maximum LTV is 70% (minimum 30% down payment). Vehicles with OMV > SGD 20,000: maximum LTV is 60% (minimum 40% down payment). These are firm legal limits — no financial institution can lend above them. The LTV applies to the drive-away price including COE, ARF, and GST. A vehicle priced at SGD 120,000 with OMV > SGD 20,000 has a maximum loan of SGD 72,000.

The OMV (Open Market Value) is set by Singapore Customs and shown on the vehicle's LTA registration documents. It reflects the vehicle's cost in its country of origin before Singapore taxes. Most mass-market passenger cars have an OMV at or below SGD 20,000 (70% LTV band); most premium and luxury cars exceed SGD 20,000 (60% LTV band). For a specific figure, the value can be confirmed with the dealer or via LTA OneMotoring before applying.

No. The MAS LTV limits are absolute caps that apply regardless of income, credit score, or employment. No financial institution may lend more than the prescribed LTV on a car loan. The down payment must also be paid in cash — it cannot be funded by a credit card, personal loan, or other financing.

The LTV percentages are the same — OMV ≤ SGD 20,000 gives 70%, OMV > SGD 20,000 gives 60% — and the maximum tenure is 7 years for both new and used cars. The practical differences are that used-car flat rates tend to be higher (~2.98% vs ~2.48% for new cars), and for older used cars the tenure may be shorter in practice, limited by the remaining COE validity. For used cars, MAS applies a depreciation-adjusted OMV (OMV − age-in-months ÷ 120 × OMV) when setting the LTV band. Per MAS.

As of 2026, typical published bank flat rates are around 2.48%–2.98% p.a. for new cars and higher for used cars (~2.98%–3.50%). For example, OCBC publishes a 2.48% flat rate (EIR 4.65% over 7 years) and DBS publishes 2.78% flat (EIR 5.19%). These are lender-advertised flat rates — not official MAS figures — and vary by credit profile, vehicle, and promotion. Per MoneySense, the EIR is the figure to compare across lenders.

Singapore instalments use the flat-rate formula: Monthly = (Principal + Principal × Flat Rate × Years) ÷ (Years × 12). For an SGD 84,000 loan at 2.48% flat over 7 years: total interest = SGD 84,000 × 2.48% × 7 = SGD 14,582; total repayable = SGD 98,582; monthly = SGD 98,582 ÷ 84 = about SGD 1,174. Because the interest is fixed and does not fall as the principal reduces, the split is constant — about SGD 1,000 principal and SGD 174 interest each month in this example.

Beyond the flat-rate interest, common fees include a processing / administrative fee (factored into the disclosed EIR), an early settlement fee (charged when a loan is repaid before the agreed tenure — typically a percentage of the outstanding balance), and a late payment charge. Per MoneySense, processing fees must be reflected in the EIR — so the full cost-inclusive EIR, not just the headline flat rate, is the figure to compare.

For private individuals, car loan interest is generally not tax deductible in Singapore — IRAS does not allow private car expenses (including loan interest) as a personal income tax deduction. Per IRAS, where a vehicle is used for business by a self-employed person, the business proportion of certain expenses may be treated differently. A tax professional can advise on a specific situation.

A Certificate of Entitlement (COE) gives the right to own and use a vehicle in Singapore for 10 years, obtained through an LTA bidding exercise. The COE is included in the drive-away price and therefore forms a large part of the financed amount — and the LTV cap applies to the price including COE. After 10 years the COE must be renewed (at the Prevailing Quota Premium), or the car exported or de-registered. When buying a used car, the remaining COE life directly affects the value and the available financing.

Open Market Value (OMV) is the value set by Singapore Customs based on the vehicle's cost in its country of origin, before Singapore taxes, COE, or dealer margin. OMV determines two things: the MAS LTV cap (≤ SGD 20,000 → 70%; > SGD 20,000 → 60%) and the Additional Registration Fee (ARF), a tiered tax on the OMV. Because OMV excludes COE and taxes, a car with an OMV of SGD 14,000 can still have a drive-away price above SGD 120,000. Per LTA.

A PARF (Preferential Additional Registration Fee) rebate is a partial refund of the ARF, given when a car is de-registered within its first 10 years. Together with the COE rebate, it makes up the car's de-registration value — a key part of residual value. The PARF rebate framework was revised from the second COE bidding exercise of February 2026, reducing the maximum rebate. When buying a used car, the remaining COE and PARF value affect the effective cost of ownership. Per LTA.

New cars typically carry a higher purchase price (including a full 10-year COE), a lower flat rate (~2.48%), and a manufacturer warranty. Used cars can have a lower overall price but a higher flat rate (~2.98%), and the remaining COE and PARF should be checked carefully. The maximum tenure is 7 years for both. Per MoneySense, total cost of ownership (purchase price + financing cost + running costs − de-registration value) is a more complete measure than the monthly instalment alone.

A shorter tenure reduces total interest but raises the monthly instalment; a longer tenure does the reverse. On an SGD 84,000 loan at 2.48% flat: a 5-year loan has total interest of SGD 10,416 (about SGD 1,574/month); a 7-year loan has total interest of SGD 14,582 (about SGD 1,174/month) — about SGD 400/month lower but around SGD 4,166 more in total interest. The EIR is similar across tenures (about 4.65–4.70%), so the trade-off is mainly between monthly cash flow and total interest.

Most Singapore car loans allow early repayment, though an early settlement fee usually applies (commonly a percentage of the outstanding balance). On a flat-rate loan the interest rebate on early settlement is determined by the lender's formula rather than a simple pro-rata of remaining months, so the net benefit depends on the outstanding amount, the rebate method, and the fee. Per MoneySense, the lender can provide the exact outstanding amount and settlement terms.

Typical documents include: NRIC (Singapore citizen or PR) or a valid pass (foreigners); income documents — recent payslips or the latest Notice of Assessment (NOA) for the self-employed; the Sales and Purchase Agreement from the dealer; and vehicle particulars (including OMV documentation). Many banks offer online applications with approval in principle. Per MoneySense, the EIR enables a like-for-like comparison of the true cost across lenders.

The Total Debt Servicing Ratio (TDSR) is a MAS framework that limits total monthly debt repayments — including car loans, mortgages, and other credit — to 55% of gross monthly income. A car loan instalment counts toward the TDSR, so an existing mortgage reduces the available capacity, and vice versa. Per the MAS, lenders assess affordability before approving a car loan.

No. CPF savings cannot be used to buy a private car or to service a car loan — the down payment and monthly instalments must be paid in cash or cash equivalents. The MAS down-payment rule specifically requires the minimum down payment to be paid in cash and not financed through any other credit. Per MoneySense.