Car loan
A car loan is a financing arrangement for a vehicle purchase in Singapore, structured under rules set by the Monetary Authority of Singapore (MAS).
What it means
Singapore car loans are governed by maximum loan-to-value ratios that vary based on the OMV of the car being financed. The exact ratios are reviewed periodically by MAS and are tighter for higher-OMV vehicles. Loan tenures typically range from 1 to 7 years. Buyers usually borrow through a dealer's preferred bank or directly through their own bank or finance company. Interest rates are usually quoted as flat rates, which look lower than equivalent reducing-balance rates and need to be converted to an effective interest rate for honest comparison. Beyond the headline rate, owners need to factor in the way the loan amortises against the depreciation curve of the car: in early years, the loan balance can exceed the car's COE-adjusted value, which is a problem if the car is written off or sold early.
Why it matters in Singapore
Singapore car ownership economics are unusually loan-driven because the upfront cost is so high. A loan that looks affordable on paper can become uncomfortable when the car loses value faster than the loan pays down. Owners who plan to keep the car the full 10 years and protect resale value through proper care typically end up better off than those who chase the lowest monthly payment.
How Revol Carz handles this
Revol Carz does not arrange financing; that sits with the dealer or bank. Where we help is on the long-term side: keeping the car looking and running well through the loan period and beyond so resale or PARF rebate value is maximised at the end.