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Refinance Car Loan – Singapore Auto Loan Considerations

When it comes to car loans or loans of any kind in Singapore, borrowers want the maximum loan at the minimum interest rates. And preferably from a branded lender for peace of mind. Most people only think about loans when experiencing a cash flow squeeze or when running into financial trouble. However, you do not have to wait for these circumstances to make the most of what you got. With low interest rates, refinancing your Singapore car loan can mean considerable savings that make an impact on your personal bottom line.

When refinancing your car loan, there are some things that will be on your agenda. You can either reduce the tenor of the loan, reduce the interest you will have to pay, or even reduce the monthly payments that you will have to make to the lender. Stay away from loans that gives you a feeling of being a gimmick.

Most Singapore car loans use a flat interest rate. So instinctively, you should be looking for a loan with the lowest flat interest rate on your car loan in Singapore. A lower flat rate will straight forward give you savings compared to your current car loan. When refinancing your loan, you might even get freebies like shopping vouchers, petrol vouchers, or even incentives for early repayment.

The underlying reason for refinancing a loan is to get better terms, and make savings. So remember to work out your costs for refinancing and judge whether it will be worthwhile to indeed switch lenders. If after working out your number you find that the savings are not significant, it may not be worth the time and hassle to go through with it. And do not be surprised if you find that you can scrape thousands of dollars of interest savings through car loan refinance.

Always do research. There are many avenues which allows you to get a good car loan for refinance. Ask questions on terms that you do not understand. And always ask for more discounts and freebies. 3 things that you absolutely must take note of is the new interest rate, the new loan tenor, and whether the savings are significant. Also look at the savings in real money terms. You are already paying huge taxes for owning cars in Singapore, you want to make the best of the finances of keeping one. Singapore car loan refinance can play into your personal financial management if you take the time to find the best deal for you.