Do you see other people driving cars on the road and wish to buy one? Do you want to buy another car, but lack of finances is relegating you to the old and perhaps malfunctioning one? Well, you do not need to worry anymore because it is now pretty easy to get car financing in Singapore in just four steps.
A Close Look at Car Loans in Singapore
An auto loan is a type of secured loan advanced by a lender, either directly or through a car dealer, to a borrower for the purpose of buying a vehicle. Once the auto loan is approved, it is deposited into the seller’s account, and the lender or dealer retains the logbook until you clear the loan. Therefore, we prefer to say that although you are allowed to drive around, the car will become yours fully after completing the loan payment and getting the logbook.
As you drive off in a car of choice, you are required to repay the loan within its term. You might want to use a car loan calculator to find out not just the monthly interest, but the APR and full payment before signing the loan agreement.
Should You Go for a Car Loan in Singapore?
For most people, being able to drive on the road is a mark of success – you can finally move everywhere you want, from workplace to holiday. A car also offers some sort of privacy because you can carry personal documents, your baby, dog, or other items in the boot or back seat. Using a car loan Singapore to buy a car also comes with these additional benefits:
- You get to enjoy your car and pay for it in installments.
- There are many cars to choose from, including SUVs and pickups.
- The process is rather fast, especially if you use lender comparison sites, such as Lendela.
- Some lenders offer buyers the option for refinancing car loans if their credit scores improve significantly along the way.
The Risk of Defaulting Repaying Car Loan Singapore
Before telling you the short process of applying for a car loan through Lendela, it is important to be committed to paying it in full because defaulting can be very risky. Here are the dangers of failing to pay your loan:
- The cars could get repossessed by the lender.
- Your credit score is likely to fall significantly.
- The risk of getting sued to meet the costs associated with repossessing, storing, and auctioning the car.
Make Sure to Do the Following after Getting a Car Loan in Singapore
The dangers we have listed above can have serious implications in your life, and it is crucial to avoid them by strictly following the auto loan repayment agreement. Therefore, here are the things that you should consider doing after getting a car loan in Singapore:
- Relooking at your personal budget to give weight to the auto loan repayment.
- Cutting down unnecessary costs and directing the cash to repaying the car loan in Singapore.
- When you think that a monthly payment will be late, ensure to inform the lender in advance.
- If you want to change some terms of the loan, such as reducing the interest rate, consider car loan refinancing in Singapore.
Car Loan Application through Lendela in Four Simple Steps
Since there are so many lenders in Singapore, from banks to car dealers, willing to offer car financing, sifting through their conditions to identify the best can be complex. This is why you should always use lender comparison sites in Singapore, and Lendela is one of the best. At Lendela, getting a car loan requires only four simple steps.
- Visit Lendela website to make your application (this takes only a few minutes).
- Get offers from lenders.
- Select the best option.
- Lendela books an appointment where you sign off the loan agreement. Drive off in your dream car!
As you can see, getting your dream car is very simple when working with Lendela. Instead of struggling with multiple applications, you only do it once. Fast, easy, and convenient!