Test Demo Auto Loan

Details	Charges
Late payment fee	$60 will be charged for each late payment
Late payment interest	12% per annum on the overdue amount on a monthly basis
Early completion fee	Within 12 months from commencement date: 20% of outstanding interest + 1.5% of balance payable 12 months or more from commencement date: 20% of outstanding interest + 1% of balance payable
Photocopy of hire purchase agreement or log card	$53.50 (including GST)

Details

Charges

Late payment fee

$60 will be charged for each late payment

Late payment interest

12% per annum on the overdue amount on a monthly basis

Early completion fee

Within 12 months from commencement date: 20% of outstanding interest + 1.5% of balance payable

12 months or more from commencement date: 20% of outstanding interest + 1% of balance payable

Photocopy of hire purchase agreement or log card

$53.50 (including GST)

How much financing should I apply for?
The amount of financing you need or should apply for depends on your personal circumstances. If you take up 70% (depending on the Open Market Value of the car) financing, you will not have to find as much cash in the short term. However, in the long run, you will pay more money for your vehicle than if you had taken a smaller Amount Financed. You also pay more interest the longer the hire period.
How is interest charged?
The market practice is typically to charge what is known as a “flat” or “applied” interest rate. In deriving this interest rate, it is assumed that the Amount Financed is constant throughout the hire period. However, the Amount Financed reduces over time so the Effective Interest Rate (“EIR”) is higher than the “flat” or “applied” interest rate. An example is shown below:

Amount Financed: $50,000
Hire period: 5 years (60 months)
Flat interest rate: 2.78%
Effective interest rate 5.24%
Total Interest: 2.78% x $50,000 x 5 = $6,950
Rental charges/Monthly instalment: $(50,000 + 6,950) / 60 = $949.17

Important Note: the amount of interest you pay via your monthly instalment reduces over time while the amount of principal you pay via your monthly instalment increases to keep the amount of your monthly instalments unchanged. This method of interest apportionment for our Auto Financing is in line with market practice and is commonly known as ‘Rule of 78
Will any fees be charged if I am able to repay my financing before the hire period ends?
Yes, you may complete the purchase of your vehicle before the expiry of the hire period. An early completion fee will be charged (please refer to our fees & charges table).

Here is an example of what would be payable upon early completion of the purchase of your vehicle.

Amount Finance (AF) $50,000

Flat / Applied Interest Rate 3.5%

Hire Period (N) 60 months

Total Interest (TI) $8,750

Rental Charges / Monthly Instalment $979.17

If you decide to exercise your right to complete the purchase of the vehicle (Early Completion) on the 24th month having paid 23 instalments in arrears, balance payable (as defined in the hire purchase agreement) would be calculated with the following formula:

(AF+TI)-(RC+OI+RV)+(OA)

Where
– RV is Recovered Value
– OA is Outstanding Amount

Total of all rental charges paid (RC): $979.17 x 23 = $22,520.91
Number of months remaining in the hire period(n): 60 − 24 = 36

outstanding interest (OI)
= [n (n+1) x TI] / [N (N+1)]
= [36 (37) x $8,750] / [60 (61)]
= $3,184.3

balance payable
= $50,000 + $8,750 − $22,520.91 − $3,184.43
= $33,044.66

early completion fee
= (20% of outstanding interest(OI)) + (1% of balance payable)
= (20% x $3,184.43) + (1% x $33,044.66)
= $967.34

Aggregate amount payable for early completion
= balance payable + early completion fee
= $33,044.66 + $967.34
= $34,012.00
I would like to buy a car. Where do I begin?
You can start by visiting car dealers and checking out the makes and models available. It is also important to read up motoring magazines and car reviews on the Internet. You should also consider your transportation needs, calculate the additional costs that come with owning a car (such as fuel, parking and ERP charges), and decide on what you are able to afford for your car expenses.

Measure up these considerations against the car’s characteristics such as fuel consumption, luggage space, acceleration, and most importantly of course, the price.

Suggested online resources:
Where can I find out about my Certificate of Entitlement (COE) package options?
A few options may be available from your car dealer. You should understand the implications of each option.
- Immediate delivery
  This option offers almost-immediate delivery of your car with COE. This is usually available when the car that you want is in stock. You may or may not be charged a small premium for such benefit. Ask your dealer about the COE price if he already has one in hand so that you can gauge the relative value of this option.
- Guaranteed COE
  If the car that you want is not in stock, a “Guaranteed COE” package will promise delivery of the car with a COE within 1 to 3 months (i.e. 2 to 6 fortnightly rounds of COE bidding). The price is typically fixed upfront. With this option, a minimum COE value is usually stipulated in the sales agreement, which means you get a price rebate if the COE falls below a certain amount. This amount is usually fixed at a very low rate so the rebate is rarely exercised.
- Non-Guaranteed COE
  This may be a cheaper option as it allows your dealer up to several months to deliver the car and bid for a COE within a stipulated price range. However, there is a risk of not being able to obtain a COE should prices continue to rise. You should consider this option only where you do not need a car urgently.

What do I look out for before I sign the car sales agreement?
Always read the sales agreement carefully. It is important to pay attention to the small print so you understand the implications of the agreement. Here are a few areas you should review in detail:
- sales agreement should accurately reflect the agreed price(s)
- clearly outlines all relevant accessories and extras that you have agreed with your car dealer
- status of your deposit in the event you are unable to secure financing for your car purchase
- fees charged for processing your application
Do I really need insurance and must I buy it from my dealer?
Singapore laws require that you obtain a minimum of Third Party Liability insurance. Most financiers would however, require that you obtain Comprehensive Insurance coverage. Such protection will provide coverage against damage to your own car as well as that of a third party.

You can choose to shop around for your own insurance. However, many dealers may give an additional discount on the car prices should you purchase your coverage through them. You should consider whether this discount outweighs the savings you may enjoy from purchasing your insurance elsewhere.
What if I'm interested in a pre-owned car?
The process involved is fairly similar. You should visit several dealers and select a car that fits your needs and budget. These are the differences between purchasing a new and used car:
- Financed Amount Limit – some financiers may require that you pay a higher deposit.
- COE – your car will already have a COE. Be sure to note when it expires and how much it is worth.
- Car Registration – your car will already have a number plate. You can choose to have this changed at additional cost.
- Road Tax – check on the expiry date of your road tax as it may be valid for only a few months and you may need to have it renewed before it expires.
How do I pay my Auto Financing bills?
You can pay your Auto Financing bills by using the following channels:
- GIRO
  Enjoy the convenience of paying your bills through automatic GIRO deductions. To apply, simply mail the completed GIRO form to us.
- AXS stations
  Pay by NETS at AXS stations located island wide.
- Self-service Automated Machine (S.A.M.)
  Pay by NETS at any SingPost Self-service Automated Machines (S.A.M.).
- Cheque
  Write your Hire Purchase Agreement Number, NRIC and contact number on the reverse side of the cheque. Cheques should be crossed and made payable to your repayment account. You may deposit the cheque at any Standard Chartered Bank Branch located island wide.
- Standard Chartered Online Banking
  Enjoy the convenience of paying your bills anytime, anywhere, through our award-winning online banking platform.
- Cash payment at Cash Deposit Machines
  Deposit cash at the Cash Deposit Machines located at Standard Chartered branches island wide.

Disclaimer

Our Auto Financing hire purchase plan offers you a flexible repayment plan, up to 70% financing, and attractive interest rate packages

Fees and Charges.

Eligibility & Documents

Documents Required

Documents Required

Tools

Loan Calculator

FAQs

Amount Finance (AF)	$50,000
Flat / Applied Interest Rate	3.5%
Hire Period (N)	60 months
Total Interest (TI)	$8,750
Rental Charges / Monthly Instalment	$979.17