Used car loans in Singapore: how much you can borrow and for how long
Last updated: October 2026
Most used cars in Singapore are bought with a loan from a bank or finance company. The most you can borrow and the longest you can take are set by the Monetary Authority of Singapore (MAS). Everything else (the rate, the tenure offered, whether you're approved) is up to the lender. We don't publish interest rates because they depend on the lender, the car and you.
The MAS limits
| Car's OMV | Maximum loan | Minimum downpayment | Maximum tenure |
|---|---|---|---|
| $20,000 or less | 70% of purchase price | 30% | 7 years |
| Above $20,000 | 60% of purchase price | 40% | 7 years |
The purchase price includes the relevant taxes and the COE. The OMV is the car's import value as assessed by Singapore Customs, and it appears on the car's registration details. A seller or dealer can tell you which band a car falls in. Source: MAS, motor vehicle loans.
Example
A used car priced at $80,000 with an OMV above $20,000: the most a lender can lend is 60%, which is $48,000. You'd need at least $32,000 as a downpayment. If the OMV were $20,000 or less, the maximum loan would be $56,000.
Tenure on a used car
The legal maximum is 7 years. For a used car, lenders also look at how much COE is left, and they generally won't lend beyond it. So a car with four years of COE left will usually come with a loan of four years or less. A longer tenure means smaller instalments but more interest in total.
Flat rate vs effective rate
Car loans in Singapore are usually quoted as a flat rate: interest is worked out on the original loan amount for every year of the loan, even though you're paying it down month by month. The effective interest rate (EIR) reflects the balance actually owed, so it is noticeably higher than the flat rate. When comparing offers, ask for:
- the flat rate and the effective rate,
- the monthly instalment and the total amount payable,
- any fees, and the charges if you settle the loan early.
What lenders look at
- Your income and existing commitments, and your credit history.
- The car: its age, COE left, price and OMV.
- The loan amount and tenure you're asking for.
Have your NRIC, proof of income (such as payslips or your Notice of Assessment) and the car's details ready. It speeds things up.
Before you sign
- Make sure the instalment fits your budget with room to spare, alongside insurance, road tax, parking and petrol.
- Read the hire purchase agreement: the rate, tenure, late payment charges and early settlement terms.
- Remember that a car under financing can't be transferred to a new owner until the loan is settled.
Renewing your COE instead?
Lenders also finance COE renewals. See our COE renewal guide or ask about a COE renewal loan.
Frequently asked questions
What is the maximum car loan in Singapore?
Up to 70% of the purchase price for cars with an OMV of $20,000 or less, and up to 60% for cars with a higher OMV. This is set by MAS and applies to banks and finance companies.
What is the longest car loan I can take?
7 years. For a used car, lenders also look at how much COE is left, so the tenure offered is often shorter.
What is the difference between a flat rate and an effective rate?
Car loans in Singapore are usually quoted as a flat rate, charged on the original loan amount for the whole tenure. Because you are paying the loan down, the effective interest rate is higher than the flat rate. Ask for both when comparing.
Does applying through your form commit me to a loan?
No. We check what is possible with the lenders we work with and come back to you. You decide whether to go ahead, and the lender decides approval.
Official sources
More guides
- The Singapore car market explained — COE categories and bidding, renewal, OMV, ARF and PARF, depreciation, loans, insurance and the transfer process, in one place.
- Renewing your COE — What renewing costs, 5 vs 10 years, timing, and what you give up.
- Car insurance and NCD — Third party vs comprehensive, how NCD works, and what affects the price.
This guide is general information, not financial or legal advice. Rules change: always check the official sources above before you decide.