By MoneyBees
How much you can borrow for a used car under MAS's 70% or 60% limit on the age-adjusted OMV, the longest tenure your COE allows, and the instalment and EIR of a flat rate.
Up to 70% of the purchase price if the car's OMV, adjusted for its age, is S$20,000 or less, and up to 60% if it is higher. The price includes taxes and the COE.
It takes the OMV less the car's age in months over 120, times the OMV. A 54-month-old car with a S$30,000 OMV counts as S$16,500. The result is never below 0.
7 years under MAS rules. Banks such as UOB and Maybank also want the loan to end before the COE expires, so a car with 4 years of COE left gets at most 4 years.
Banks quote a flat rate on the original loan for the whole tenure. The real yearly rate, the EIR, is higher, often near twice the flat rate. The calculator shows both for your loan.
A flat rate charges interest on the full loan every year even as you repay it. The EIR measures interest on what you still owe, so it comes out higher.
Yes. MAS counts only the months since Singapore registration against the months left of its 120, using OMV - (A1 - A2) x OMV / (120 - A2).
Yes. MAS caps the new tenure at 7 years less the years already financed, or the time left on the COE.
No. MAS's motor vehicle loan limits leave out motorcycles and commercial vehicles.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).