Car Buyer Advice

Is S$0 Down Payment Actually Possible?

So, you’ve your eyes set on the latest car model that has been the talk of the town, and all that’s left to do is to finance your dream purchase. Truth be told, it’s always challenging to work within your means when it can be tempting to break the bank for the sweet ride you’ve always wanted.

Lucky for you and the many consumers in Singapore, there are now plenty of loan options to choose from. Be it getting a car loan the traditional way, aka a bank loan, or from a car dealer, or a finance company, there are the costs and benefits of each scheme.

And if you’ve heard of a S$0 down payment car, you might be thinking: Is this even real? As a matter of fact, yes. You can actually drive away in your dream ride without having to pay a single cent upfront.

How is this even possible? Well, we are glad you ask. In this article, we will be sharing important information you should know about car loans, as well as the lowdown on S$0 down payment. Buckle up, you are in for a ride.

What is the maximum loan amount you can take?

In Singapore, the maximum loan tenure is seven years, and all banks are obliged to adhere to the regulations set by the Monetary Authority of Singapore (MAS).

The loan amount that you are allowed to take depends on the open market value (OMV) of your vehicle. The maximum amount you can loan is either 60% or 70% of the car’s open market value (OMV).

  • Motor vehicle with OMV ≤ S$20,000: maximum LTV is 70%
  • Motor vehicle with OMV > S$20,000: maximum LTV is 60%

If you are keen to learn more about the types of car loans in Singapore, do check out our article: ‘Car Loans in Singapore: What You Need to Know’.

How does $0 down payment actually work?

Now, onto the exciting part and what you’ve been waiting for: S$0 down payment car. Because not everyone can pay up a lump sum of money upfront and some individuals need to get a car urgently, some finance companies partner directly with car dealers to offer attractive S$0 drive-away packages.

Technically, for this $0 down payment car to work, what you’re potentially doing is borrowing 100% from a finance company – that itself, is a huge risk for both parties. While this is definitely the easiest way to get a new car even if you don’t have the finances at that point in time, you can end up paying more with higher monthly repayments for your ride.

To give you a clearer perspective on how this S$0 down payment actually plays out, here is a simple illustration on the interests you might incur and the potential trade-in costs:

Should you consider a $0 down payment loan?

Everyone has different needs and preferences when it comes to getting a car. If you are in dire need of owning one for convenience and family, and you can accept the hefty cost and commitment in the long run, then $0 down payment might just be the right path for you.

Alternatively, you can explore car leasing as a more attainable and cost-saving option. There is a great deal of companies out there that offer car leasing with different monthly costs and deals.

If you are looking to lease a car, or purchase a new or pre-owned car, you can explore our extensive range of leasings, insurance and vehicle models at For advice and consultation, kindly book an appointment with us via the website.

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