There are some things to get done before you can have the car you have always wanted. Choose a good car, get the right price, and find a great auto loan. Before you shop for a car, it is better to shop first for an auto loan. Here are some tips towards a great auto loan in Singapore.
tip #1: check your credit rating
Your loan approval greatly depends on your credit rating. Singapore gives lenders and borrowers the right to see the credit reports and evaluate the standing.
Make your credit score look good by paying your existing loans on time.
tip #2: know your limit
Even before looking for a car, know how much can you really spend. Consider that you need to give a down payment.
If you already found an auto loan, ask your money lender how much can you ultimately put a limit in a car considering your income and monthly repayments.
If you look for a car first, you might like a car that you unknowingly can’t afford and some good salesmen will make it look that you can. Beware or you might end up putting much of your salary on your auto loan.
tip #3: see the fine print
Make sure that the auto loan you have chosen does not have terms that might make it more costly. Real even the finer details and understand all the terms. Make sure that you can follow the repayment schedule.
tip #4: think about insurance
Get a life and disability insurance. Some lenders worry that something might happen to their borrowers, having an insurance helps you land a great auto loan. While it is not considered a requirement, it can help your loan get approved.
tip #5: shop more
Do not settle yet on an auto loan. It is better to shop around and see which one fits your needs. Banks, credit unions and private moneylenders offer auto loan, but banks usually require a lot of paperwork while moneylenders can assess your loans online and just have a few requirements.
tip #6: find flexible loan
The truth is there could be a time when you might have a hard time paying for the monthly loan repayment. Look for a loan that has flexible terms and do not hesitate to talk to your lender if a problem arises.