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HometransportFrom getting lower interest rates to good EV deals: How to finance...

From getting lower interest rates to good EV deals: How to finance your new car the smart way

Buying a car in Singapore is a big financial commitment. 

With high certificate of entitlement (COE) prices, insurance premiums, road tax, maintenance costs and parking charges, having a clear budget is crucial for all prospective car buyers – be it first-timers, or even veteran drivers hoping to shake things up with a new ride.

Arguably, the most important part of your budget is your car loan. But the loan process can be a hassle and not as straightforward. And this is where OCBC comes in. OCBC can help by offering you a pre-approved car loan – OCBC Car Loan – even before you decide which car to buy.

With OCBC Car Loan, getting started is as simple as getting online. Singaporeans, Singapore PRs and foreigners aged 21 and above can apply for an OCBC Car Loan using their Singpass, with the entire process taking just 60 seconds. 

Since the application is through Singpass, OCBC Car Loan is secure and hassle-free. With an approved loan, buyers can head down to the showroom with certainty.* 

More reasons to take up a green ride

As if that is not enough, there is something to sweeten the deal for those seeking a greener ride.

Enter the OCBC Eco-Care Car Loan, a package aimed at electric vehicle (EV) buyers. OCBC has partnered with some of the largest EV manufacturers on the planet – Tesla, Audi, Jaguar and Nissan – to pave the way for a greener Singapore.

Reduced environmental impacts notwithstanding, the cost-effectiveness of choosing an EV as your latest ride cannot be understated. The Singapore government has incentivised EV purchases by implementing schemes like the EV Early Adoption Incentive, giving EV purchasers up to $20,000 off the additional registration fee till Dec 31, 2023.

EV drivers can also receive the maximum possible rebates under the Enhanced Vehicular Emissions Scheme, with vehicles in Band A1 qualifying for up to $25,000.

In day-to-day use, charging an EV is significantly less expensive than refuelling at a gas station. Plus, with fewer moving parts, EV maintenance is simpler, cheaper and less frequent than with a diesel or petrol vehicle.

So the OCBC Eco-Care Car Loan is just the icing on the cake. Interest rates on loans for petrol and diesel cars stand at 2.78 per cent per annum, while COE cars – cars that have renewed COEs – have interest rates of 2.98 per cent per annum. 

But those taking advantage of the OCBC Eco-Care Car Loan enjoy an interest rate of just 2.48 per cent per annum.

Based on a loan tenure of seven years, the typical effective interest rate – inclusive of all fees and charges – for petrol and diesel cars is 5.19 per cent per annum, while it stands at 5.54 per cent per annum for COE cars. OCBC Eco-Care Car Loan users, meanwhile, enjoy a rate of 4.65 per cent per annum.

Till Dec 31, 2023, every EV purchase also comes with approximately three months’ worth of charging credits, for use at Charge+ charging stations all across the island.

“The sustainability movement has been steadily gaining traction in the last couple of years. Even though consumers are increasingly conscious of their carbon footprint, we felt more could be done to encourage Singaporeans to choose sustainable alternatives,” says Mr Kenny Tan, head of renovation, car and wealth financing at OCBC Bank Singapore.
 
“When the OCBC Eco-Care Car Loan was first launched in 2021, the electric vehicle ecosystem was still in its nascent stage. Even today, consumers may hesitate to make the switch to electric vehicles, with cost and inconvenience being two key factors holding them back. But by tapping on our strong network of partners and offering preferential loan rates to Eco-Care Car Loan borrowers, we seek to address these pain points,” he adds.

According to Mr Tan, the value of the OCBC Eco-Care Car Loan extended in 2022 surged by more than 400 per cent from 2021. With the increase, Mr Tan says: “We will continue to think of innovative ways to support Singapore’s push for an ‘all-EV’ future.”

For those who need no further urging, visit the OCBC website for more details.

*The in-principle approval amount is not a guarantee but an indication.

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