By MoneyBees
Work out the most expensive car you can buy in Singapore from the instalment you can pay and the cash you have. The loan follows MAS's car loan limits by OMV and the 7-year cap. See your instalment as a share of income and how much less you could borrow for a home later.
A month.
Most new cars are above S$20,000.
From the dealer or bank quote.
Before CPF.
Home loan, study loan, card minimums.
Car price you can afford
$145,787
limited by your instalment
Car loan
$85,787
$1,200 a month for 7 years
Instalment vs income
15.0%
all debts: 15.0%
$1,200 a month at 2.5% flat over 7 years repays a loan of $85,787. Your $60,000 covers the 40% down payment on a car up to $150,000.
Your instalment runs out first, so the most you can spend is $145,787. Interest over the loan is $15,013, an effective rate of about 4.79% a year.
If you later buy a home, banks count this instalment under the 55% TDSR. Tested at 4% over 25 years, your income supports a home loan of $833,591 without the car and $606,248 with it: $227,343 less.
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| OMV | Most you can borrow | Least cash | Longest loan |
|---|---|---|---|
| S$20,000 or less | 70% of price | 30% of price | 7 years |
| More than S$20,000 | 60% of price | 40% of price | 7 years |
For cars bought under agreements from 27 May 2016. A used car's OMV is reduced by its age before the limit is applied; the car loan calculator works this out.
You earn S$8,000 a month, can pay S$1,200 a month and have S$60,000 in cash. The car's OMV is above S$20,000, so you can borrow 60% of the price. At 2.5% flat over 7 years, 84 payments of S$1,200 total S$100,800. Dividing by 1 + 2.5% x 7 = 1.175 gives a loan of S$85,787. Add your cash and the car can cost up to S$145,787.
The loan is 59% of that price, within the 60% limit. S$60,000 would cover 40% of a S$150,000 car, so here the instalment, not the cash, sets the price. The S$1,200 is 15% of your income, and it cuts the home loan your income supports at 4% over 25 years from about S$833,600 to S$606,200.
The instalment is only part of what a car costs. Road tax, insurance, petrol, parking and servicing come on top every month. Use the car cost calculator to add them up before you settle on an instalment.
Figures checked 3 Oct 2026.
Start from the instalment you can pay and the cash you have. The instalment sets the largest loan you can repay over up to 7 years; your cash has to cover at least 30% or 40% of the price under MAS rules. The car you can afford is the lower of the two limits.
For cars bought under agreements from 27 May 2016, you can borrow up to 70% of the price if the car's OMV is S$20,000 or less, and up to 60% if the OMV is higher. The longest loan is 7 years either way.
MAS's motor vehicle loan rules limit the loan amount and the tenure, not your income ratio. The bank or finance company still checks your income and credit record before it lends.
Yes. Under MAS's TDSR rules, all your monthly debts, car loans included, count towards the 55% limit when you apply for a home loan. Every dollar of car instalment is a dollar less for the home loan.
A flat rate charges interest on the full amount you borrowed for the whole loan, even as you repay it. The effective interest rate (EIR) reflects the reducing balance, so it is close to double the flat rate on a long loan.
No. MAS caps car loans at 7 years. To lower the instalment you need a cheaper car, more cash upfront or a lower interest rate.
Yes. For a used car, MAS reduces the OMV by the car's age before it decides whether the 70% or 60% limit applies. The car loan calculator works out the adjusted OMV from the registration date.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).