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Keyword: car loan refinancing Singapore
Car Loan Refinancing in Singapore: Answers Common Questions
Did you know that it is possible to get a car loan refinancing in Singapore and enjoy lower
interest rates? Well, it might be simpler than you think, and we will tell you all about it. In this
post, we will take a deeper look at car loan refinancing to demonstrate the main benefits and
you should go about it. Let’s get to it.
Car Loan Refinancing in Singapore: Is It A Good Idea?
If you are still undecided about car loan refinancing in Singapore, here are the prime benefits
to anticipate.
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There is an opportunity to reduce the payments: You might be able to enjoy lower
interest rates with car financing. However, make sure to carefully compare the current
and targeted rates to make an informed decision.
Refinancing can help to make loan repayments more manageable: If the amount you are
paying every month is very high because you applied when the credit score was poor,
but it has improved significantly, it is possible to pull that lower. Although not
recommended, you might even be able to lower the monthly payment by taking a longer
repayment period for the new loan.
The perfect opportunity to shift to a better lender: Lenders in Singapore are not equal.
For example, there are some who offer discounts, excellent account management, better
customer service, and other add-ons. If you can identify a better lender, it might be
possible to shift there and enjoy his services.
Refinancing makes it possible to convert your car’s LTA classification to drive for Grab.
For example, if the vehicle was bought for personal purposes using a car loan, its LTA
classification would be P10 or P11. To drive for Grab, the law requires that you convert
to Z10 or Z11. However, this will not be possible if the car has an outstanding loan. If
you opt to refinance, the new lender can help with the conversion.
How Does Car Loan Refinancing Work?
Car loan refinancing is the process of taking another to clear the old loan and shift to the new one under
new terms and conditions. I most cases, the new loan is taken from a different lender. Most people in
Singapore prefer car loan refinancing if they had borrowed the original when the credit score was not
very good but has now improved, and they can qualify for lower interest rates. When done correctly,
can loan refinancing in Singapore can offer you lower rates, easier repayment options, and make it
possible to clear the loan faster.
To be able to pick the best deal, it is paramount to check what different lenders in Singapore have to
offer and make a comparison. You might also want to check other attributes of the lenders, such as
good customer support when sending the one work with.
Thongs to Check When Refinancing Your Car Loan
For most, the primary target when considering car loan refinancing in Singapore is a lower interest
rate. However, you also need to check the following details, comparing them with the current loan and
other refinancing options:
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The processing fees involved: Even when the new loan’s interest rate is low, additional charges
such as processing fees can make the loan expensive.
Maximum loan amount: If you look at different car loan refinancing options in Singapore, they
come with varying maximum amounts that you can borrow. If you have a specific figure in your
mind, check whether it falls within the allowed limits.
A feature of interest: If you want to be making additional payments, you might be interested in
a refinancing deal that does not penalize early repayment. Another impressive feature you
might want is an insurance product bundle. So, check the loan option that offers these features.
Mistakes to Avoid When Considering Car Loan Refinancing in Singapore
If you want to enjoy the benefits of car loan refinancing in Singapore we have highlighted in
this post, it is important to avoid the following mistakes.
Extending the Loan Term
Although selecting a longer loan term when refinancing a car loan in Singapore might help to
pull down the monthly payment, you are likely to pay more by the end of the loan term. Let’s
take an example here. If the original car loan was $65,000 and had a 3.99% interest and you
target to refinance the remaining $45,000 at 1.99% for four years, the effect is that you are going
to save $4,502. If you push the repayment to seven years, you will only be able to save $3,134.
Waiting for Too Long
When targeting lower interest rates or other favorable conditions through car loan refinancing
in Singapore, now might be the best time. If you have already established the current payment
is high, every additional payment at a higher than necessary rate means a waste of money. Even
if the loan is new or has already been refinanced, do not hesitate to refinance it if there is an
opportunity to pull down the interest rates. Why pay more when you can do with less and
make some savings?
Failing to Understand the Situation of the Current Loan
If you do not understand the current situation of your loan, jumping into refinancing might
make it even more expensive. To review the state of the current loan, you need a thorough
review of the loan agreement. So, if you cannot track the loan agreement for your car, it will be
a good idea to start by getting a new copy from the lender. Luckily, this is simple because it
only requires you to reach the lender’s customer desk for assistance.
Apply for Car Loan Refinancing in Singapore through Lendela
When you make the decision to refinance your car loan, selecting the preferred lender is never easy.
This is because of the long list of lenders plus the risk of falling into the hands of unlicensed money
lenders. This is why you should consider using lender comparison sites, such as Lendela.
With Lendela, you are sure of avoiding unlicensed lenders because the company only works with legit
lenders. However, the most notable benefit of using Lendela is that it helps to simplify the process of
loan refinancing for you. If you opt to do the application alone, it can be lengthy and involve a lot of
paperwork. However, the entire application process can be completed in only a few minutes by working
with Lendela. Here are the main steps for car loan refinancing using Lendela.
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Visit Lendela’s website to make a short application. This takes only a very short moment.
The application is sent to different lenders who are ready to work with borrowers with a profile
such as yours.
The lenders send pre-approved offers for you to review.
Check the offers to select the one with the best terms and conditions.
Lendela books you an appointment to sign the agreement.
Sign the agreement in the lender’s office to start enjoying the new terms and conditions.
Car refinancing in Singapore is an excellent thing because it provides some relief from high-interest
rates and can help one to manage debt more effectively. As we have demonstrated in this post, you
should compare different lenders carefully to optimize the benefits that come with each. Therefore,
make sure to work with Lendela for the best refinancing options.
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