Car refinancing in Singapore is applying for a new auto loan to pay off an existing car loan. It is a strategy for people struggling to pay for their car loans or to complete the payment faster.
Here are the factors to consider when applying for car refinancing:
1. Refinancing loan terms
If the car refinancing loan has better interest rates and flexible payment terms, it is better to get one. However, if the refinancing loan is the opposite, meaning it has a higher interest rate than your current loan, don’t go for it.
2. Current loan
Just like any other loan, lenders can only give a limited amount of money. For example, a lender can only give SGD 500,000. If your outstanding balance with your existing loan is SGD 700,000, then it is not ideal to go for a car refinancing that can’t pay off your existing loan entirely. If you want a cheaper vehicle, opt for a second hand car in Singapore.
3. Credit score
The credit score is critical for loan applications. The higher your credit score is, the larger the money you can loan and the lower the interest rate will be.
Paying all your loans on time builds your credit score.
4. Financial status
Some banks, auto dealers, and money lenders will look through your financial status before granting car refinancing. The key is to have a stable income or job in the last two years to get your loan application for a prime mover truck in Singapore approved.
5. Financial institutions
You can get better deals when you shop around and look for financial institutions with the best refinancing deals. If you still can’t afford it or you don’t qualify for one, maybe you better go for van leasing in Singapore instead.
Consider these factors when applying for car refinancing in Singapore. Visit Think One Automobile & Trading for more information.