Car Financing/New Car Loan interest rates; DBS - 3.25

[Vhtfhwlego]

From the lowest 1.88% comparing with 3.875%.

 

Loan $100K over 10 years = S$18,800.

Loan $100K over 5 years = S$19,375.

 

Huat Huat Huat!

[Altivo]

Is there any notice on this? Because the rates has been 3% + on the bank websites since few years ago. They don't update their websites.

 

I think u mixed up with the base i/r rate vs effective i/r

 

When the base i/r was 1.88%, the effective i/r was between 3.5-4% depending on the tenor

 

Now the base i/r is 3.25%, the effective i/r is between 6-7% depending on the tenor.

[Bighero]

i remember enquring about this before.

 

i was told that getting a car loan directly from a bank (DBS) is different from getting a car loan from a AD.

the rates through AD is lower

that is why the rates on bank websites are always higher

 

anyone remembers this?

 

i still think i am correct

[Altivo]

Before the increase, it was how many % wor ???

 

It was 1.88% for new cars and 2.28% for used cars.

 

Now is 3.25% (new) and 3.875% (used)

[Deckbuild]

Before the increase, it was how many % wor ???

 

I'm also interested in whats the rate for 26 Feb 2013, since it's the first day of the new ruling.

[Deckbuild]

It was 1.88% for new cars and 2.28% for used cars.

 

Now is 3.25% (new) and 3.875% (used)

 

Yesterday's rate?

[TVT]

Loan $100K over 5 years = S$19,375.

Suppose the new car price is still $100K, how can still can loan $100K over 5 years ??? I tot only 50/60% and the rest pay in cash...

[Kobey]

I think u mixed up with the base i/r rate vs effective i/r

 

When the base i/r was 1.88%, the effective i/r was between 3.5-4% depending on the tenor

 

Now the base i/r is 3.25%, the effective i/r is between 6-7% depending on the tenor.

 

What I meant was, where did TS get the info from? Because if it is from their website, it might not be updated. Their websites has been showing 3.25% or so for the past few years.

Edited February 27, 2013 by Kobey

[TVT]

Then those who are currently servicing their loan, no change in their interest rate right?

[Deckbuild]

Then those who are currently servicing their loan, no change in their interest rate right?

 

No lah! When you sign the dotted line, it's stated there fixed interest rate.

[Xers007]

Suppose the new car price is still $100K, how can still can loan $100K over 5 years ??? I tot only 50/60% and the rest pay in cash...

he didnt mention is the car price of 100k... it is an example of a loan sum of 100k dude...

[Xers007]

Then those who are currently servicing their loan, no change in their interest rate right?

 

of course no change...

[Xers007]

From the lowest 1.88% comparing with 3.875%.

 

Loan $100K over 10 years = S$18,800.

Loan $100K over 5 years = S$19,375.

 

Huat Huat Huat!

 

Could it be the interim rates until every thing stabilize...

[Mllcg]

borrowing interest rate overnight go up..

 

but interest we getting same leh =/

[Chowyunfat]

That is why all the full licence banks here earn record profits. Interbank 0.2 % and they lend you 6% (effective interest rate). Don't be a fool and let those banks rip you off. Credit card late charge or overdue you pay at least 8%. Their rate are not much different from loan shark.

For me I never borrow unless it is to my advantage. In fact I lend the bank money by buying their bonds : DBS 4.7%, UOB and OCBC 5%.

Don't use your CPF to pay for your property, loan from banks at 1% while CPF pay you 2.5%.

[Hsiao]

With the car loan interest rate increase, will it applies to mortage loan as well ????? This will sure affect a lot of Singaporean taking bank loans for their recent private properties purchase. God bless them.

[Van]

New Passenger Vehicles

Period of Financing Customer Interest Rate Effective Interest Rate (p.a.)

1 year 3.25% 7.043%

2 years 3.25% 6.666%

3 years 3.25% 6.505%

4 years 3.25% 6.396%

5 years 3.25% 6.309%

 

Illustration 1

Suppose you take a loan of S$50,000.00 over 5 years at an interest rate of 3.25%. The computation would be as follows:

 

Total interest payable over 5 years

S$50,000 x 3.25% x 5 years = S$8,125.00

Monthly instalment

(S$50,000.00 + S$8,125.00) / 60 months = S$968

 

 

Does this mean for 1.88% :

50,000 x 1.88% x 5 = 4,700

monthly installment

50,000 + 4,700 / 60 = 912

 

the diff is 968 - 912 = 56 monthly

 

 

[Kar_lover]

 

Seems like the posts here are citing bank website. Has anyone actually gone to a car showroom to ask about interest rate?

 

Reason i am asking is (and I COULD BE WRONG) because prior to me receiving my current car last Oct, i was browsing DBS website (sometime between Jul and Aug) to see more details of their iHP car loan although my loan with iHP had already been approved at 1.88% (u can say i itchy backside wanted to read the fine details). So i went to the DBS website and the auto loans there were 3.5% as what was reported here. So as far as i know, the published interest rates on DBS website all the while like that and may not be a reaction to the latest MAS rules. Note that the auto loan is not stated as iHP. So maybe this is the "nominal rate" but when apply to iHP there is a "promotional" rate. Again, i could be wrong. Maybe this weekend i drop by showroom and ask.